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A startup called NEOU, which tries to build its reputation as Netflix of fitness, has managed to raise $5M from capital investors. It now has over 50,000 clients in more than 60 countries across the globe.
The ravaging COVID-19 virus that the globe has been suffering from has shown that a new world is possible. Hence, investors are staking that the at-home fitness boom would remain even after the pandemic. A startup called NEOU, presenting itself as Netflix of fitness, has managed to raise $5 million from capital investors. This includes investment from Ares Management Corp, an asset management firm based in Los-Angeles. The startup firm rounded value is pegged around $40 million, according to Nathan Forster, the startup CEO.
The first investor in the NEOU project in 2017, Ares Management Corp. CEO Michael Arougheti said that he believes that at-home fitness is a megatrend in the wellness industry, and NEOU would be impactful in the space as one of the first firms to provide such service.
The firm, since 2015, when it came to existence, has raised around $30 million. Some of the firm’s previous investors like Bowers & Wilkins reinvested in the startup again in the latest investment round.
Forster explained that the new funds are going to be used to scale up offering to draw new clients. He said they are also striving to make a profit between the next 1-2 years. Foster also noted:
“We’re the Netflix of fitness based on our user experience and affordability, and an Amazon to content creators, in that we are a marketplace that provides trainers with a way to scale their businesses digitally”.
Success of NEOU amidst Sit-at-Home Directive
NEOU has been effective in the fitness space like its competitor Peloton Interactive Inc (NASDAQ: PTON). The stay-at-home order by the government to curb the spread of coronavirus has been a positive directive for the firm. NEOU now has over 50,000 clients in more than 60 countries across the globe. It charges around $15 monthly or $75 yearly. Subscribers access not lesser than 3,000 fitness classes in their homes.
Famous wellness advocate DJ Steve Aoki with more than 6 million followers on social media and Nicole Mejia, a fitness instructor whose live classes sell out in seconds, make use of the NEOU platform for their content.
NEOU, which aims to raise between $25-50 million later this year has started wooing investors in order to help the startup expand further.
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Muhaimin is a journalist, a fintech and crypto enthusiast who is passionate about its development in Africa and across the globe. Muhaimin derives pleasure in reporting and analysing happenings in the crypto world and a believer in Blockchain technology.
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