Peloton Confidentially Files for IPO

Peloton said Wednesday it has made a filing with the Securities and Exchange Commission for an initial public offering, the latest in a string of consumer tech companies to test the public markets. The announcement follows reports last year that the maker of connected fitness machines was planning an IPO.

The company filed paperwork with regulators confidentially, taking advantage of a law initially intended for smaller companies that allows them to keep their prospectus confidential until shortly before the share sale, a route taken by WeWorkSlack and Pinterest. Peloton has raised over $900 million in funding, and was valued at $4.15 billion after its latest round in August, according to PitchBook. It did not release the price and number of shares to be offered.

New York-based Peloton jumped onto the fitness scene in 2012 as a solution for solitary at-home workouts. The “Netflix for fitness” business was founded by John Foley, Yony Feng, Tom Cortese, Graham Stanton and Hisao Kushi. The bikes and treadmills, which retail for $2,245 and $4,295 respectively, come equipped with large touchscreens that allow users to connect to live and recorded classes. Users are required to purchase a $39/month membership for access to classes.

Since the first bike sold in 2014, Peloton has sold over 400,000, according to news reports, and garnered a cult following, including celebrities like David Beckham and Hugh Jackman. It released its treadmill in 2018. Peloton competes with Flywheel and SoulCycle, companies that offer traditional group cycling classes, while rival Echelon offers connected bikes.

Source: Forbes

2019-06-06T11:17:17-04:00 June 6th, 2019|