CityRow Raises $12M for Connected Fitness - Rowing Machines & Studios

CityRow Secures $12 Million in Series A Funding

Initially established in 2014 as a traditional, brick-and-mortar rowing studio, CityRow demonstrated foresight by embracing the connected at-home fitness model early on. The New York-based firm introduced its digital platform in 2018, preceding the widespread adoption of home workouts spurred by the pandemic by two years.

While the trend towards at-home fitness was already developing, 2020 dramatically accelerated its growth, exceeding many expectations.

Significant Revenue Growth and Funding

CityRow reports a substantial 375% increase in revenue over the past year. This growth is primarily attributed to strong sales of its rowing machines and the increasing popularity of its platform subscriptions.

The company has now announced the successful completion of a $12 million Series A funding round. This round was spearheaded by JW Asset Management, with additional participation from Sol Global and K2.

Plans for Expansion and Livestreaming

The newly acquired capital will be strategically allocated to fuel the company’s expansion. A primary focus will be the integration of livestreaming classes into its existing library of on-demand content.

“This investment is fundamentally about enabling us to rapidly scale the company in alignment with our customers’ desires,” explains Helaine Knapp, founder and CEO, in an interview with TechCrunch.

“Our immediate priority is the launch of live classes, and we have recently secured a lease for a dedicated space in Midtown Manhattan. We anticipate launching these classes this fall, representing a significant undertaking we’ve been planning for some time.”

Studio Upgrade and Team Growth

The new studio represents a significant upgrade for CityRow. Previously, content was recorded at one of its existing corporate locations.

Knapp also notes that the company has doubled its workforce in the last year, currently employing 14 full-time corporate staff. They are projecting another doubling of the team within the next year.

Rowers and Franchise Expansion

CityRow currently offers two connected rowing machines: the Go Classic, priced at $1,295, and the Go Max, retailing for $2,195. These machines integrate seamlessly with the company’s mobile app, which also provides a range of off-rower exercise programs.

The company currently operates 11 locations, comprising two corporate-owned studios and nine franchise locations.

To date, CityRow has sold 64 franchises, with plans to launch an additional 12 in the coming year.

Some of these expansion plans were temporarily paused due to the pandemic.

Franchisee Resilience and Community

“We are still in the early stages of recovery,” says Knapp. “However, I am incredibly proud of how our franchisees navigated the challenges of the pandemic, particularly considering many were newly established studios.”

“This resilience is a testament to the strength of the CityRow brand and the supportive community fostered within our franchise network.”

Digital Fitness and Membership Retention

Knapp highlights that all members of CityRow’s physical locations receive complimentary access to the company’s app. This likely encouraged customers to maintain their memberships even during studio closures.

“The digital fitness market was already experiencing rapid growth prior to the pandemic,” Knapp explains. “The pandemic simply accelerated our progress, potentially by a couple of years.”

“While digital fitness is still a relatively small segment of the overall market, in-person fitness remains the dominant force.”