Peloton, the “Netflix of fitness”, joins the Felix family!
Today, we are excited to announce our investment in Peloton, a fast-growing global technology company redefining the massive fitness industry, as we are taking part in their $550 million series F financing round. Peloton’s co-founder and Chief Executive John Foley and President William Lynch just said they expect this financing will be the last before an IPO. This investment is part of our late-stage investment programme where we cherry pick companies with the potential to build iconic brands and long-lasting, massive businesses in our core digital lifestyle markets just like we did with Farfetch (fashion), Houzz (design) or Deliveroo (food), and now Peloton (fitness).
At Felix, we are passionate about brands that reinvent our digital lifestyle, where emotion and digital technologies are combined to deliver a unique experience. Wellness is a core investment theme for us as people are increasingly keen to have a better quality of life, feeling healthy, fit and happy and in this context technology can help. The fitness market is large and growing, and Peloton is at the forefront of innovation and customer adoption in this space.
By merging both technology and creativity to offer a unique consumer proposition, Peloton fits right into our investment thesis. They deliver a compelling and very engaging experience with the technology to make every workout effective, and the social connection to make every workout a unique human experience. Customers access to this convenient and immersive indoor cycling experience by buying Peloton $1,995 stationary bicycle and subscribing to its stream live classes for $39 a month. Behind this proposition hides a lot of complexity that the company, that was formed only 6 years ago in 2012, manages exceptionally well.
We identified the company in 2015 when we launched Felix and have been tracking its high growth since then. Peloton is expecting to generate more than $700m in revenue in this current fiscal year, continuing its more than 100% year-to-year revenue growth rate.
Peloton is the perfect illustration of the power of mastering the full consumer experience to take advantage of a growing global trend. We were impressed by their ability to create a unique moat by mastering at the same time: hardware (bike), software (app), media (content production with best-in-class instructors and music), retail & logistics, brand and community. The combination creates a unique experience that consumers love as the extraordinary retention level shows.