Goldman Sachs is leading a US$65m financing round in Echelon Fitness – a sign it believes the at-home fitness market is set for further growth during 2021.
Echelon currently offers a line of connected products from bikes, rowers and fitness mirrors to a treadmill. These link to an app, allowing consumers to participate in both live and on-demand fitness classes.
Goldman Sachs' growth equity platform, GS Growth joins existing investor, North Castle Partners, for the latest round of funding, which will accelerate Echelon's plans to develop its omnichannel and multi-product offering.
US-based Echelon has secured a number of tie-ins with major retailers which now offer its products – including Walmart, Dick's Sporting Goods, Costco and Amazon.
"Since our inception, we've seen astounding growth in member community, retail partners and product offerings," says Lou Lentine, president and CEO of Echelon Fitness.
"We're a connected fitness brand, dedicated to changing the category through smart innovation at affordable prices and with an investment from Goldman Sachs, we can propel our business even further."
Stephen Kerns, a member of GS Growth, said: "We're incredibly impressed by what Echelon Fitness has been able to accomplish with a very small amount of capital raised to date.
"We're excited about its omnichannel and multi-product offering, that enables a broader reach to retailers and consumers."
Echelon's main investor North Castle's portfolio of companies, also includes other fitness and sport brands such as Equinox, Barry's, Full Swing Golf and Octane Fitness in its portfolio.
"North Castle was excited by the opportunity at Echelon to offer a great product at competitive prices before the global pandemic set-in," said Jon Canarick, managing partner of North Castle Partners.
"We've experienced explosive growth and we're very excited to have Goldman Sachs invest in the business alongside us.
"We have complementary experience and I'm looking forward to working with the Goldman team."
** For an inteview with North Castle MD, Jon Canarick in Fit Tech's sister magazine, HCM, click here.
