Indoor cycling bike company Peloton has just completed a fairly significant capital raise, which many think could pave the way toward its initial public offering (IPO). Also with this capital raise, Peloton is now considered a unicorn. The company closed a $325 million series E financing round, led by Wellington Management, Fidelity Investments, Kleiner Perkins and True Ventures, among other sizable investors.

This announcement marks the latest milestone for Peloton, which earlier this year was named by Crain’s as the fastest growing company in New York. Over the past year, Peloton nearly tripled its annual revenue, grew its subscriber base over threefold and expanded from 14 to 20 showrooms around the country.

After this round of financing, Peloton is valued at roughly $1.25 billion, which clears the bar for unicorn status.

In addition to Peloton’s award-winning indoor cycling bike for home use, the company recently introduced a commercial-grade bike that is tailor-made for high-traffic environments and equipped with software designed to quickly onboard new users.

Also in April, Peloton announced an industry-first partnership with Westin Hotels and Resorts, and its commercial bike is already in over 30 Westin properties around the country.

Jon Callaghan, co-founder of True Ventures, commented:

Since first meeting John Foley in 2012, we’ve been big believers in him and his vision for how Peloton shapes the future of media and fitness. Peloton is a cultural phenomenon and has redefined what it means to build a connected experience disrupting multiple industries simultaneously: in home fitness, boutique class fitness and connected media devices. It’s incredibly fun to work with this exceptional team.

Be on the lookout later this year for what could be one of the larger IPOs in 2017 or 2018.

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