Therabody, the maker of the Theragun hand-held massage device, a cult favorite among athletes, has raised $165 million, the DealBook team reports. The fund-raising round, which was led by the private equity firm North Castle Partners, comes as wellness businesses seek to regain their footing as the pandemic recedes.
During the height of the pandemic, money poured into home fitness. Sales of Peloton and Tonal workout equipment skyrocketed. Companies like Peloton are now scaling back as demand falters, but Benjamin Nazarian, Therabody’s chief executive, says the pandemic highlighted a need to take care of your body.
“Whether it’s a recession or not, your body is the most valuable thing you have in your life,” Mr. Nazarian said. Last year, Therabody’s revenue reached $396 million, up from $224 million in 2020.
Executives did not disclose the valuation of the latest fund-raising round. “The idea of having products for recovery in your home — we still think is a fairly young concept,” said Jon Canarick, a managing partner at North Castle, whose investments include Barry’s Bootcamp and HydroMassage.
Theragun will use the money to invest in digital content and acquisitions. It’s also set to announce eight new products on Tuesday, including smart goggles to help relieve facial tension and headaches, as well as a new mini Theragun. The financing includes investment from a broad array of enterprises and celebrities, such as the comedian Kevin Hart’s Hartbeat Ventures and the model Karlie Kloss.
“I had been a consumer and a superfan for a while,” Ms. Kloss said. She did not disclose the size of her investment.
Fending off copycats will be key. Therabody has settled with more than 15 companies over intellectual property infringement. Yet it continues to see competitors offering massage guns cheaper than its $400 Theragun Elite.
People “think that the low price point is going to take the entire market — and that is probably a very naïve understanding of I would say any consumer business,” Mr. Nazarian said. “Tell me one industry where there is no premium brand.”