Ergatta, Rowing Startup, Nabs $200 Million Valuation
(Bloomberg) -- Ergatta, a maker of $2,199 rowing machines that use games in lieu of instructors as it competes against Peloton Interactive Inc. for a share of the at-home fitness market, has nabbed a $200 million valuation.
The Brooklyn-based startup raised $30 million in a round led by Advance Venture Partners that included participation from Greycroft, Fifth Wall and Gaingels, Chief Executive Officer Tom Aulet said in an interview. Hans Tung, a GGV managing partner, joined the company’s roster of angel investors, which includes Zynga Inc. founder Mark Pincus.
Ergatta launched in March 2020 and reached $35 million in run-rate revenue within eight months. It will use the fresh funds to develop new games; add live competition and events; grow its membership base; and scale operations so its supply chain can meet consumer demand.
“Connected fitness was already growing quickly, then Covid really accelerated adoption tailwinds,” Aulet said.
Ergatta’s workouts are delivered as games, enabling users to compete as they would while playing a sport. “Our primary market research identified half the population isn’t motivated by instructor-led classes so we developed a solution that has clearly resonated and is quite addictive,” Aulet said.
Ergatta has around 10,000 active users who on average work out more than 10 times a month for at least 20 minutes. Workouts are personalized based on prior performance and the games are designed to be challenging enough to keep users engaged, he said.
The company may explore pairing its game-based content with other cardio equipment, though no timeline has been set, Aulet said. Ergatta expects ongoing traction even in a post-vaccine world.
“We started the company with the belief that convenience is a priority for consumers,” said Aulet.
AVP founding partner Courtney Robinson -- who’s joining Ergatta’s board -- said in an emailed statement she believes the future of fitness is at home.
“Ergatta’s unique workout experience resonates with a large, unaddressed portion of the market that thrives off of competition, sport and continuous improvement,” she said.
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