Get ready for Peloton to be as big and well-known as the NordicTrack. The connected stationary bike maker just raised a $550 million round of financing led by venture-capital firm TCV, one of the world’s largest technology growth equity firms, reports the Wall Street Journal. The six-year-old brand is now supposedly worth $4.15 billion.
Naturally it’s expected that Peloton will pursue an IPO in the coming year. Peloton’s co-founder and chief executive, John Foley, said 2019 “makes a lot of sense” to go public.
The heavy investment is in line with Peloton’s increasingly aggressive expansion. In May, the company announced plans to dip into global markets, starting with the U.K. and Canada, followed by European cities. Beyond its cult-favorite bike, Peloton is also playing with new modalities; this fall, it will sell a $3,995 treadmill that offers an on-demand boot camp and circuit-style classes.
In May 2017, Peloton raised $325 million Series E financing, one of the largest digital-health investments of 2017. The latest round brings the total equity raised by Peloton to nearly $1 billion.
Peloton has grown exponentially with its $1,995 stationary bicycles, which bring group classes into the home. The company boasts over one million subscribers and 32 showrooms in the United States. It plans to further appeal to more income levels with the addition of a new monthly financing program.
According to Foley, Peloton is on track to generate more than $700 million in revenue in the fiscal year ending next February, marking more than 100% year-to-year revenue growth rate. With its latest round of funding, you can expect far more from Peloton in the fitness technology, media, and equipment categories.
“We will have a third product in the next year or two–we’re already working on that,” Foley told Fast Company earlier this year. “And there will be more platforms to allow you to get your heart rate up.”