Indoor cycling giant Peleton has raised a further $550 million in Series F financing, money that it will use for aggressive overseas expansion.
Earmarked for spend, Peleton will now launch in the UK and Canada, the first markets explored outside of the U.S..
As part of the expansion, 20 new retail stores will be created, with openings planned for the U.S., UK and Canada by early 2019. This takes the tally north of 60 locations worldwide.
Further to its cycling product, the Peleton Tread will join the product catalogue this Autumn. This will prompt an uptick in activity in the running and walking market.
Digital membership is also now to be introduced at $20 per month. This will offer over 10,000 live and on-demand, instructor-led classes across numerous categories.
Peloton also announced plans to open a 25,000+ square foot campus in Plano, TX, which will serve as its member support hub, and Peloton Studios, a 35,000+ square foot, state-of-the-art flagship studio complex at Brookfield’s Manhattan West development in New York City. This new fitness facility will house Peloton’s broadcast and production operations and multiple studios from which thousands of group fitness classes will be hosted and live streamed for the Peloton Bike, Peloton Tread and Peloton Digital.
The latest round was led by TCV, a significant backer of technology growth. The founding general partner Jay Hoag sits on the boards of companies like Netflix and Electronic Arts and will now become a director with Peleton.
“We are truly honored to partner with TCV and with Jay Hoag personally,” said John Foley, founder and CEO of Peloton. “TCV’s reputation, experience, and involvement in businesses like Netflix, Spotify and Facebook will be invaluable as we build Peloton into one of the most unique and influential global consumer product and media companies of our day.”
“We look for companies that offer their consumers a great value proposition, have engaged and delighted customers, and are led by visionary CEOs who have built a world-class management team,” said TCV’s Founding General Partner Jay Hoag. “We found all of these characteristics in Peloton and look forward to working with John and the entire team on their journey to revolutionize the home fitness category.”
Many of Peleton’s prior investors rallied behind the latest funding round, as well as some new partners including Felix Capital and Winslow Capital.