#UK This SoulCycle competitor that is going after parents just received a $75 million boost

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peloton bike living room

Indoor cycling company Peloton received $75 million in growth capital investment from equity firm Catterton, according to a release, making the brand an able competitor in the indoor cycling sector.

We are thrilled to partner with Catterton and build on the passion consumers have expressed for Peloton’s incredibly immersive fitness experience and unique digital content,” John Foley, Founder and CEO of Peloton, said in the release.  “Catterton’s outstanding track record of helping leading retail and consumer companies achieve their goals, as well as their deep understanding of the secular shifts taking place in the fitness space makes them an ideal partner for Peloton.  Catterton’s investment marks an exciting milestone in our growth and development.”

Catterton has invested in the popular Pure Barre franchise, as well as CorePower Yoga.

But unlike SoulCycle, which filed for an IPO this summer, Peloton’s primary business is not its studios.

“[We’re] not trying to compete with SoulCycle or Flywheel in our studio business —  running studios is a different style business than we’re trying to build,” Foley said to Business Insider. The business, he said, is primarily that of a technology company. 

“We see our self more akin to an Apple, a Tesla, or a Nest or a GoPro —  where it’s a consumer product that has a foundation of sexy hardware technology and sexy software technology.”

Peloton is unique in that it only has two studios — a flagship in Manhattan and a recently launched studio (in a partnership with Studio 3) in Chicago. These classes are streamed to Peloton’s customers who pay $39 a month for unlimited classes. Customers can choose from a variety of live classes and archived classes. The bike itself costs a hefty $1,995. (Some Business Insider employees have tried the bike, too.)

He’s also not trying to steal away SoulCycle’s target demographic, whom Foley described as on average 28 years old and predominantly female.

Peloton customers are much older — age 40-50, Foley said — and contain an equal split between men and women.

“When you’re 47 and you have kids, you quickly realize that your weekends and mornings become all about your kids,” Foley said. “Peloton bike owners have disproportionately said, ‘I can fit these things [working out] in.'”  

Peloton is expecting to expand. Foley anticipates that retail stores will double — there will be 24 units by the end of next year.

And an IPO might be on the horizon in the near future — but not for financial reasons.

“For this type of company, you know, a global consumer product like a Tesla or a GoPro, the IPO process can be a pretty fun and valuable part of getting the word out and kind of a marketing platform,” he said. “So while he don’t need the money — we’re profitable, and now we have well over $75 million on our balance sheet, so it [an IPO] wouldn’t be so much a financing opportunity. But I think in the next year or two we will consider an IPO form a marketing perspective.”

SEE ALSO: The competitors that could crush SoulCycle

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NOW WATCH: This stationary bike might be a SoulCycle killer

from Business Insider http://ift.tt/1QUJnle

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