Indoor cycling fitness company Peloton Interactive Inc. is raising $75 million by selling a stake to Catterton, a private equity firm focused on consumer businesses.
Peloton’s management plans to use the proceeds to accelerate the nationwide roll-out of its store showrooms, founder and Chief Executive Officer John Foley said in an interview. Unlike traditional cycling studios that provide exercise classes, Peloton customers buy a $1,995 bike equipped with a tablet computer and pay a monthly subscription fee to follow exercise classes streamed live from its studio.