“Over the past several months, the company behind the Up fitness-tracking wristband and Jambox wireless speaker has acquired nearly a handful of companies, including Massive Health and BodyMedia,” Gigaom reported Thursday, confirming that it’s just raised more than $100 million in a combination of debt and equity financing.
The raise comes amid booming interest in wearable technology. Jawbone’s Up band faces competition from Nike’s Fuelband, Fitbit’s trackers and similar products from other health and fitness technology companies. Mobile apps like Noom Walk and Moves are increasingly making the smartphone a contender in the wearable computing space.
“We’ve been experiencing crazy sell-through demand, particularly since the relaunch of Up,” Hosain Rahman, Jawbone’s founder and CEO, tells Fortune. “It’s been faster than anything we’d had before, and equity is not the most efficient way to scale all that. If you’re a software company with high demand, you just call Amazon (AMZN) and add more servers to your AWS account. But when you build a physical good, there is a lot more that goes into it – ordering materials, manufacturing, delivery… Debt is the most efficient way to finance that.”