PGA Tour golfer Dustin Johnson is the latest professional athlete to invest in OxeFit, a company that manufactures and sells high-end fitness training systems.
Johnson participated in OxeFit’s Series A1 which recently closed with $15 million in equity commitments. In total, OxeFit has raised nearly $35 million in funding since Mohammed “Rab” Shanableh and Peter Neuhaus founded the company in January 2020.
OxeFit plans to raise an additional $20 million in funding in the coming months, according to Shanableh. The company plans to use funds from the A1 cycle and the upcoming cycle primarily to scale the business through the hiring of employees and the sales and marketing of its consumer product XS1 which was launched on the market in December 2021. The company also has a product, XP1, which launched in April 2021 and is aimed at professional sports teams, rehabilitation facilities, and college athletic programs.
OxeFit received a small seed funding early on from Lydia Partners, a venture capital firm founded by Shanableh in 2020. But since then, the company has shunned funding from other VCs and instead courted athletes and fitness professionals. sports medicine as investors.
Other OxeFit investors include Dallas Cowboys quarterback Dak Prescott, Los Angeles Rams cornerback Jalen Ramsey, former Cowboys tight end Jason Witten, NFL wide receiver Dez Bryant, former Major League Baseball outfielder Matt Kemp and Toronto Raptors forward Thaddeus Young. James Andrews, a famous orthopedic surgeon who has worked with many professional athletes, is also an investor in OxeFit and helped design the product.
“We took an approach early on instead of the traditional business model of making sure athletes and sports medicine (community) were connected early in the life of the business,” said Shanableh, who is the CEO of the company. “They are a great validation for the technology.”
He added: “It’s probably the best thing we’ve done, to be honest with you, because they’ve been extremely active down to the design principles.”
Startups often court top athletes as investors because they can bring attention to the product or service. Some of these companies compensate athletes and give them equity without the athletes having to invest their own money, but Shanableh says that’s not the case with OxeFit.
“Now you notice that a lot of (startups) are starting to try to add celebrities, and their approach is, ‘Let’s buy as many celebrity names as we can so they support the product,'” Shanableh said. “Just to be clear, I haven’t paid a celebrity a dime. Not a single name that’s been announced and yet to be announced has been paid a penny by OxeFit. In fact, they’ve all invested and paid to be part of OxeFit. This is a key differentiator.
Johnson became familiar with OxeFit late last year when he heard about it from Kolby Tullier, one of his trainers. Johnson and Tullier are partners in a fitness and training center in Jupiter, Florida, which has two of the OxeFit XP1 products. Johnson also installs an OxeFit XS1 in his home.
“My trainer can do a workout and send it to my machine and it’s already preloaded in there,” Johnson said. “The technology is so much more advanced than anything I’ve seen. I think it’s a great machine. You can do all sorts of different things on it, and I like the feedback it gives too.
The XP1, which is intended for commercial use by professional teams, training centers and university programs, has a 43-inch touchscreen and can support up to 500 pounds. Meanwhile, the XS1 is primarily intended for use in home gyms and features a 32-inch touchscreen and can hold up to 250 pounds of weight.
Both products have built-in force plates and sensors and use artificial intelligence to personalize workouts and provide real-time data. People can do strength training and cardio workouts on the machines. Cardio exercises include simulations of rowing, canoeing, paddle boarding and kayaking.
The XS1 starts at $3,799, down from the original entry price of $5,999 when it launched last December. People also have to pay a monthly subscription of $39.99 to access the workouts. OxeFit’s competitors in the home fitness space include Tonal, which raised $250 million in a Series E round in March 2021 at a $1.6 billion valuation, and Tempo, which raised $220 million in a Series C round in April 2021.
Peloton is another fitness startup that has greatly benefited people working from home during the coronavirus pandemic. But in recent months, Peloton revealed that its sales had dropped significantly, and the company replaced its CEO and co-founder John Foley with the former Netflix.
Private companies like OxeFit, Tonal and Tempo don’t have to disclose their sales figures or any other financial data, but Shanableh acknowledged the trend of more people returning to gyms to train. That’s why OxeFit started selling XS1 products to gym chains like Planet Fitness.
Shanableh declined to say how many units the company sold, but said it was in the “thousands”. He added that the company had generated “several million” dollars in revenue without sharing details.
“We are moving fast,” Shanableh said. “We have more incoming orders than we can process. We are growing as fast as we can without disrupting our business too much. »