A little more than a month after laying off 35% of its workforce, Hydrow Inc. has brought in new capital.
The Boston-based fitness technology company has raised nearly $21 million in new funding, according to a filing with the U.S. Securities and Exchange Commission Tuesday.
A spokesperson for the company did not respond to requests for comment prior to publication.
Hydrow sells two at-home rowing machines of different sizes for $2,495 and $1,495. The company also markets its $38 per month membership to owners of its machines. The membership allows users to track their stats, access rowing workouts and connect with fellow users. Those with their own rowing equipment can also access this content through the Hydrow app.
Hydrow last raised capital in March, bringing in $55 million led by Constitution Capital. At the time, the company said that its revenue tripled from 2020 to 2021. Hydrow had previously attracted big-name investors like Lizzo and Justin Timberlake to its cap table.
Its most recent fundraises this year were separated by a round of layoffs last month that impacted around 70 employees from across the company. Hydrow had around 200 employees before the layoffs.
“This strategic pivot will allow us to reduce our overall operating costs and lean into our amazing group of members to support the growth of our community to deliver the same extraordinary experience that our members have come to expect from Hydrow,” Hydrow founder and CEO Bruce Smith said in an emailed statement regarding layoffs last month.
Tech layoffs have become a more common story in 2022 as worsening economic conditions caused many companies to look for ways to cut costs. As of mid-June, hundreds of people working at companies based in the Boston area had lost their positions.
Hydrow bore the double impact of a poor market and a decline in the at-home fitness market. Jefferies found that interest in at-home fitness equipment peaked in April 2020 and has since waned. Internet searches for this equipment have been “tumbling” since January 2021. Earlier this month, at-home fitness giant Peloton laid off nearly 800 employees after previously eliminating 2,800 jobs in February.
Smith said the company continues to see an IPO as an option for Hydrow once the market improves but is also looking into other “very attractive strategic options as well.”
