MAGIC AI has raised £8m ($11m) in a Series B co-led by Beringea and existing backer IW Capital, taking total funding to roughly $20m (about £14.9m) since 2023. The London company says the US, where it already has more than 18,000 members, will account for most of its revenue next year.
MAGIC AI sells a wall-mounted smart mirror that uses computer vision to project a trainer into the room, count repetitions and correct form. It has been one of the more visible British consumer-hardware startups of the past three years, helped by an angel list that has included the former England cricket captain Sir Alastair Cook and the footballer Jesse Lingard.
The new round brings back several of the company's existing shareholders. PXN Group, Accelerate Ventures and Ventures Together all re-invested, and Active Partners joins the register for the first time. Valuation was not disclosed, and the company has not published the dilution taken at this round.
The capital is earmarked for the United States and for the data layer beneath the product. MAGIC AI reports more than 18,000 members across all 50 states, over 500,000 AI-coached workouts completed and roughly 150,000 hours of accumulated workout data — the asset it says drives its ReflectAI progress-tracking system.
"America will make up most of our business by next year," said founder and chief executive Varun Bhanot, pointing also to going "far deeper into the data layer behind ReflectAI". The company has hired a former managing director of Peloton International to run the expansion.
The cheque size sets the strategy. At £8m, MAGIC AI is entering a market that has already destroyed better-capitalised competitors: Lululemon wrote off and shut down Mirror after paying $500m for it in 2020, and Tonal and Tempo both raised several times MAGIC AI's cumulative total before the connected-fitness correction. Bhanot's company is attempting the same land-grab on a fraction of the capital, which makes subscription retention rather than hardware volume the number that matters.
Beringea, which runs ProVen VCT money in the UK, and IW Capital give the round a domestic growth-equity profile rather than a US venture one, and PXN Group's presence keeps a northern investor on the register.
For a hardware business selling a premium device into American homes, the next disclosure worth watching is recurring subscription revenue. Until that is published, the £8m buys roughly the runway to prove that the 18,000 US members convert into a base that justifies a larger round at a higher price.
Original source: BusinessCloud — https://businesscloud.co.uk/news/fitness-mirror-magic-ai-raises-series-b-to-scale-in-us/
