Peloton, the freshly-minted unicorn company that makes $2,000 high-tech spin bikes, is opening up a showroom in the Seattle area.
Peloton just closed a $325 million Series F funding round, at a $1.25 billion valuation, led by Wellington Management, Fidelity Investments, Kleiner Perkins and True Ventures, with participation from GGV Capital and Comcast NBCUniversal.
Wall Street Journal cited Brian Smith, an analyst with Piper Jaffray, who expects the value of the health and fitness market to rise from $26 billion in 2015 to more than $30 billion by 2020. So it’s easy to see why investors want a piece of the action.
Spin classes are a big part of the fitness market, and Peloton’s home-based model is meant to stand out from the variety of companies like SoulCycle and Flywheel that offer studio classes. Peloton bikes come with a large built-in tablet stocked with more than 4,000 different on-demand classes and 14 daily live-streamed sessions.
According to WSJ, Peloton brought in $170 million in revenue in 2016, close to triple its 2015 revenue of $60 million. The company also said it has more than 100,000 users.
As TechCrunch reports, there is some concern that the high price point of the bikes and a $39 monthly subscription cost could limit its future user growth. Additionally, spin competitor Flywheel recently announced plans to start selling at-home bikes.