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Tempo achieves new goal in latest fundraising
Posted on Thursday, 30 July 2020 13:07
US-based home gym equipment startup Tempo has raised USD 60.00 million in a series B round of funding that values the business at USD 250.00 million.
The cash call is significantly larger than the USD 17.50 million fetched in February.
Tempo claims to be the first home fitness system that uses three dimensional sensors and artificial intelligence to analyse motion and provide real-time rep counting, form feedback and weight recommendations.
Norwest Venture Partners and General Catalyst, alongside existing investors DCM, Bling Capital, Signal Fire, Founders Fund and Y Combinator, all took part in the series B round.
The news comes as the world returns to a “new normal” following the outbreak of the coronavirus pandemic, which sent many countries into lockdown and had a significant impact of economies and markets.
As people were forced to stay home and gyms and fitness centres closed to avoid the spread of Covid-19, consumers were doing home workouts to stay in shape and looked for alternative methods of keeping fit.
In addition to the financing, Tempo also announced a strategic partnership and investment from Tishman Speyer.
The group plans to use the proceeds to increase manufacturing capacity and expand its innovative content offering with a second production studio.
Tempo’s product is priced at USD 1,995, or USD 55.00 a month for 36 months with financing, in addition to a separate monthly membership of USD 39.00 per month.
It is an all-in-one fitness studio that transforms any room into a complete gym with a full weight set that adjusts from 7.50 pounds to 100.00 pounds.
Since announcing pre-orders in February, sales are up 500.0 per cent and on track to exit 2020 at a USD 100.00 million run rate.
Tempo values the US fitness industry at USD 30.00 billion and the popularity of boutique fitness classes has grown 10.0x in the last five years.
The group is looking to compete with rivals such as Peloton and Tonal.
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