Tempo, the developer of an AI-powered connected fitness system that provides a variety of at-home fitness classes, raised $60 million in new funding.
The funding round was led by Norwest Venture Partners and General Catalyst, with participation from existing investors, including Bling Capital, DCM Ventures, SignalFire, Founders Fund, and Y Combinator.
Tempo also announced a strategic partnership and an investment from real estate investment firm Tishman Speyer.
Tempo will use the capital to increase manufacturing capacity and expand its innovative content offering with a second production studio to meet soaring demand.
As part of the investment, Holly Maloney, Managing Director at General Catalyst, and Edward Yip, Partner at Norwest, will join the Tempo Board of Directors.
“Tempo’s interactive feedback on performance and form, combined with its personalized strength and cardio programming, is pushing the at-home workout experience,” said Holly Maloney, Managing Director at General Catalyst. “It’s a game-changer for anyone interested in results-driven fitness.”
Tempo offers a membership plan for 36 months at – $1,995 or $55/month. Additionally, in a separate, $39 monthly plan, the company offers unlimited, AI-powered training spanning from strength and cardio to recovery classes, available both live and on-demand, the company said.
Notably, the company says it is on track to hit a $100 million run rate by the end of 2020. It also reported a 500% increase in sales since the company opened up pre-orders in February 2020.
“The investments from General Catalyst, Norwest, and our returning investors are a stamp of approval on Tempo’s comprehensive approach from firms behind some of the world’s most exciting companies,” Moawia Eldeeb, Co-Founder and CEO of Tempo.
Last year, Tempo’s competitor, MIRROR, secured $34 million in Series B-1 financing, bringing its total funding $72 million. The Series B-1 round was led by Point72 Ventures, with participation from Lululemon and others. Recently, Lululemon agreed to acquire Mirror for $500 million.
“After shaking up the home fitness industry since launch, we firmly believe that Tempo has the potential for exponential growth,” said Edward Yip, Partner at Norwest.
Wellness companies raised $284 million in 1H 2020, according to Mercom Digital Health Funding Report.