After enjoying close to a year of sizzling growth, Peloton Interactive, Inc. (NASDAQ: PTON) has hit a new hurdle following a recent wrangle with the Consumer Product Safety Commission over alleged potentially lethal safety issues with its Tread+ treadmill. Today, the exercise company's shares have dropped more than 4% after the media spotlight fell on a competitor, New York start-up Ergatta. Ergatta is another home-workout company harnessing digital technology to give users a challenging, engaging experience. However, unlike Peloton, which focuses on exercise bikes and uses live-streamed or recorded workouts with instructors to motivate its users, Ergatta makes rowing machines. Its software aims at making a workout "feel" "more like playing a sport or a game," providing a "fitness gaming experience" including both solo and competitive modes. Image source: Ergatta. Today, Ergatta made the news and sent Peloton's stock sliding by reaching a valuation of $200 million. The company announced the receipt of $30 million worth of venture capital financing this morning. Ergatta says it will use the money to create a wider variety of games and workout content for its service. Multiple firms contributed to the funding, including Greycroft, whose co-founder Ian Sigalow remarked: "I've rarely seen a new consumer brand gain traction this quickly," as reported by Tech Startups. Courtney Robinson, a founding partner of major investor Advance Venture Partners, said Ergatta's "year one growth is a testament to both the demand for gamified fitness and their intimate understanding of the consumer demographic driving that demand." Meanwhile, investors are watching Peloton for its potentially highly positive third-quarter fiscal 2021 earnings report due out next Thursday. 10 stocks we like better than Peloton InteractiveWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Peloton Interactive wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Rhian Hunt has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Peloton Interactive. The Motley Fool has a disclosure policy.Source