Tonal Valued At $1.6 Billion After $250 Million Funding Round

Smart at-home fitness platform Tonal has raised $250 million in an oversubscribed Series E funding round, valuing the company at $1.6 billion.

The round was led by investment firm Dragoneer, and also included Cobalt Capital and over 30 athlete investors, including boxer Mike Tyson and tennis pro Maria Sharapova. Existing investors, including L Catterton and Sapphire Ventures, also participated in the funding round. Tonal has now raised over $450 million to date, according to a press release.

“Since retiring from tennis, Tonal has become a major part of my fitness routine — especially spending more time at home this year, as we all have,” said Sharapova.

Tonal will use the funding to scale its business and operations to meet rising customer demand. When gyms closed in the early days of the pandemic, consumers sought out digital fitness programs and at-home fitness equipment. The platform noted in the press release that sales grew over eight times in 2020, and also logged increased member engagement and retention rates.

“The past year has shown us what the future of fitness looks like — connected, personalized, and content-driven, all within the comfort and convenience of your home,” said Jared Middleman, partner at Tonal investor Dragoneer.

The platform recently partnered with Nordstrom to expand its reach by bringing mini Tonal shops into 40 of its retail locations, as the department stores looks to dedicate more retail space to activewear.

Tonal uses a digital weight system, rather than regular metal weights, that use artificial intelligence (AI) to learn from the user and adapt in real-time to innovate strength training.

“Our growth over the last year underscores the changing fitness landscape. People want smarter, more connected ways to work out,” said Aly Orady, CEO of Tonal.

Tonal will also use the funding to expand its marketing and content initiatives and expand its team. The platform also announced in the press release that it has recently brought on several executives to the roles of chief strategy officer, chief technology officer and chief operations officer.