Tonal Targets $100M in New Funding


As connected fitness cools off, Tonal wants to bulk up.

The latest: Makers of a wall-mounted, tech-enabled strength training machine, the company is raising new capital. According to Bloomberg, Tonal could fetch more than $100M in funding at a $1.9B valuation.

This development follows a series of ups and downs for both the company and home fitness brands.

  • Benefiting from pandemic lockdowns, Tonal gained a 90% share of the smart strength category as sales surged 800% in 2020.
  • Last April, it landed $250M at a $1.6B valuation, bringing its total funding to $450M.
  • This July, as COVID restrictions lifted and gym visits rebounded, the company laid off 35% of its workforce.

The big picture: Now, facing economic uncertainty and supply chain challenges, Tonal is raising money in hopes of shoring up a capital-intensive business.

Citing continued growth, the equipment maker expects to earn more than $100M in subscription revenue over the next year.

But, with brands like Peloton and iFIT struggling as consumer behavior swings, cash won’t come cheap. New investors will receive favorable terms, including liquidation preference, according to Bloomberg.

Punchline: As the fitness industry’s wild ride continues, connected equipment makers are adjusting to the new normal — one where fitness seekers have the option of leaving their homes.

While competitors reshuffle their business models and test equipment rentals, Tonal seems committed to selling one $3,500 smart gym. Whether or not that strategy shifts with new capital in hand remains to be seen.

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