SoulCycle will stay privately-owned
The indoor cycling company will suspend its IPO for now “due to market conditions.” The firm filed paperwork with the SEC in 2015, and it is now pumping the brakes.
Originally, SoulCycle hoped to raise $100 million in its IPO to help pay off debt and open more SoulCycle locations. However, the CEO recently told CNNMoney that they did not need the IPO to pursue its long-term goals. Indeed, they have enough private shareholders to be able to continue their vision.
It’s reasoning behind the change in mind is the increasing competition in a small market. Because of the intensity, scheduling, and money, people often do boutique cycling for short periods of time. However, the industry is still raking in massive amounts of money. According to the International Health, Racquet, and Sportsclub Association, high-end fitness studios make up 35% of the fitness market.
Boutique gyms offer a cult-like sense of belonging, an intense workout, a way to flaunt a consumer’s wealth and status, and a more personalized experience. However, there are many opportunities for competitors to enter the industry. For example, Peloton sells stationary bikes with streamed classes so consumers can exercise from their home.
But SoulCycle is doing what it can to set themselves apart. Last year, they created a new custom bike last year, they rolled out SoulAnnex – non-cycling classes – and SoulFundamentals, an hour-class with two instructors.
Although SoulCycle is staying private right now, it may still go public in the near future. If they hope to expand and add more locations, this may be their only option.
Featured image via Ramstein Air Base