Peloton founder’s Ernesta brand raises $20M, plans 30 showrooms
John Foley, who left Peloton, founded custom rug retailer Ernesta, doubling sales to $55 million in 2025. Ernesta secured $20 million in Series B funding to open 10 more showrooms in 2026 and reach 30 U.S. locations by end-2027.
1. Founder Transition
After departing Peloton, John Foley identified a gap in the custom rug market and launched Ernesta to streamline design, pricing and delivery for a broader customer base.
2. Sales Growth
Ernesta achieved 100% year-on-year growth, doubling revenue to $55 million in 2025 by targeting mid-career designers and ambitious homeowners with affordable custom rugs.
3. Series B Funding and Expansion
In March 2026, Ernesta closed a $20 million Series B round to fund the opening of 10 new showrooms in 2026, aiming for 30 locations nationwide by the end of 2027.
4. Operational Strategy
The company leverages a vertically integrated facility in Cartersville, Georgia, and a global partner network to reduce lead times from nine months to two weeks for custom rugs.