Tonal, Maker of $2,995 Fitness Station, Is Seeking New Funding
Tonal, Maker of $2,995 Fitness Station, Is Seeking New Funding
(Bloomberg) -- Tonal, a company that sells a wall-mounted workout station for $2,995, is in talks with investors about raising new equity, according to people with knowledge of the matter.
The San Francisco-based company is in discussions with investors including private equity firm L Catterton about a new round of funding that would value it at $250 million or more, said some of the people, who asked not to be identified because the talks are private.
Spokeswomen for Tonal and L Catterton declined to comment.
Tonal -- which makes a station that employs artificial intelligence and competes against products including Lululemon Athletica Inc.-backed Mirror and Forme -- charges users $49 per month for virtual personal training sessions. The coronavirus pandemic and resulting stay-at-home orders across the U.S. led to a significant increase in sales, Chief Executive Officer Aly Orady said in April, noting that the company’s average daily sales had more than tripled compared with the preceding weeks.
The company’s patented digital weight system enables users to lift as much as 200 pounds. Tonal was valued at $185 million after raising $45 million in April 2019, according to data provider Pitchbook. L Catteron, Evolution Media, Shasta Ventures, Mayfield, Sapphire Ventures and Serena Williams’s Serena Ventures backed Tonal as part of that deal.
“There’s nothing more important in life than health, and the most exciting aspect of my investment in Tonal was not just the opportunity to help grow the next great connected fitness brand, but the opportunity to help people get stronger, healthier and live better lives,” Williams said in a statement at the time.
Tonal’s website showcases endorsements from Williams, former football star Tony Gonzalez and professional surfer Sage Erickson.
It’s not the only at-home fitness company benefiting from the pandemic lockdowns that’s seeking new funding. Rowing-machine maker Hydrow is in talks to raise capital as well. And publicly traded rival Peloton Interactive Inc. has experienced heightened demand, leading its shares to surge 58% this year, compared with a 9.5% decline in the S&P 500 index.
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