Tonal: $250 Million Funding And $1.6 Billion Valuation

By Dan Anderson ● Apr 18, 2021
  • Tonal announced recently it has raised $250 million in a new round of funding at a valuation of $1.6 billion. These are the details.

Tonal — one of the most advanced strength and personal training platforms that combines proprietary digital weight, AI, and expert-led coaching — announced recently it has raised $250 million in a new round of funding at a valuation of $1.6 billion. This round of funding brings the company’s total to over $450 million as the company further establishes itself as a leader in connected strength training.

The oversubscribed Series E round is led by Dragoneer with participation by Cobalt Capital, new athlete investors, and existing investors including L Catterton and Sapphire Ventures. This funding round will allow Tonal to further accelerate marketing and content initiatives while scaling the business and operations by investing in people, logistics, and manufacturing to more quickly meet its unprecedented demand.

Last year was a year of explosive growth for Tonal as sales grew over 8x and notable member engagement and retention rates. Plus Tonal also recently announced a nationwide partnership with Nordstrom across 40 locations, expanding its retail footprint to 60 points of distribution.

With over 90% market share in the connected strength training segment, and a Net Promoter Score consistently above 80, Tonal continues to broaden its lead in the category.

Professional athletes have been core to Tonal’s DNA. And with this round, it continues to add to its growing roster of more than 30 athlete investors with new investments from Drew Brees, Larry Fitzgerald, Maria Sharapova, Mike Tyson, and Sue Bird.

Along with increasing staffing across the organization, Tonal has recently made a number of key executive hires that include:

— Chief Operations Officer Shannon Crespin – a former Johnson & Johnson executive, Ms. Crespin will be responsible for leading Tonal through scaling and achieving operational excellence.

— Chief Strategy Officer Gregory de Gunzburg – former Head of Corporate Strategy and Development for NBCUniversal, where he led the launch of Peacock, Mr. de Gunzburg will oversee Tonal’s strategic operations and business development functions.

— Chief Technology Officer Bryan James – with more than two decades of leadership experience at Google, Nest, Apple, and TiVo, Mr. James will lead Tonal’s software and hardware engineering organizations.

— Plus Tonal also recently welcomed Nina Richardson and Jack Lazar to its Board of Directors. And both Richardson and Lazar bring extensive operating experience with consumer hardware and software businesses, and considerable public company board experience.

KEY QUOTES:

“Our growth over the last year underscores the changing fitness landscape. People want smarter, more connected ways to work out. With this new capital, we will continue to demonstrate how intelligent fitness will fundamentally change the way people train and maintain their health. We plan to use this funding to further our investments in product and content and scale our operations so that we can get more Tonals to more people faster.” 

— Aly Orady, CEO of Tonal

 “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 — and Tonal is an important force driving this trend. Its sophisticated hardware and engaging content provide a superior workout experience that has created immense customer love, and the product experience continues to improve at an incredible pace — thanks to Aly and the team’s inspiring vision and relentless execution. We are thrilled to support them as they enter this exciting next phase of growth and seek to revolutionize at-home fitness for consumers across the country.”

— Jared Middleman, Partner at Dragoneer

“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. As an investor, I’ve always been drawn to companies that are developing a new approach to their category, and Tonal’s focus on A.I. and technology brings added accountability and a unique sense of motivation that I haven’t yet seen in the space. I’m excited by the opportunity to help shape that vision for the future of fitness with Aly and the Tonal team.” 

— Maria Sharapova