An even bigger engineering team, more showrooms, and a plan to expand beyond exercise bikes are on the way for New York-based Peloton.
The company, which developed a stationary exercise bike with a built-in screen for streaming video classes, announced on Wednesday it got a $75 million investment from private equity firm Catterton to support its growth and development of new products. This puts Peloton’s total funding at $120 million, including a $30 million Series C round raised back in April.
The company already about doubled its engineers this year to around 45. CEO and co-founder John Foley did not specify how much larger that team would get, but he clearly wants to supercharge the talent pool at the company. “I wouldn’t be surprised if it’s double that by the end of next year,” he says.
Peloton, founded in 2012, runs a studio in Chelsea that streams live fitness classes to owners of its bike. On-demand videos are also available for its customers. Although exercise bikes are what the company is known for, Foley says he wants to expand into other parts of the fitness technology market. “We’re trying to become a business more like Apple or Tesla, one of these global consumer products that’s foundation is hardware and software technology,” he says.
The new engineers Peloton brings on board might work on more than just new features for its titular bike, though Foley says it remains a core part of the business.
His ambitions are far-reaching. “I don’t see us as a stationary bike company,” Foley says. “I see us as the most disruptive company at the nexus of fitness and technology and content.”
Peloton has a ways to go though before it can truly lay claim to such a title. The company is prototyping other products in other categories, Foley says, but he would not reveal details.
Naturally, with the hiring plans, the company needs room to grow and will move into a 40,000-square-foot headquarters that can house a staff of 300, he says, “with anticipation that we are going to be one of the most aggressive technology innovation shops in New York City.” Peloton currently operates out of a 10,000-square-foot office.
Foley says the footprint of Peloton’s showrooms, where it puts its exercise bikes on display, will also expand from the current 12 to possibly 24 by the end of 2016.