Tonal is breaking a sweat trying to keep up its pace.
The high-end at-home fitness company announced $130 million in new funding and a change of leadership.
The funding round valued the company between $550 million and $600 million, according to the Wall Street Journal — a steep drop from its $1.6 billion valuation in 2021.
That puts Tonal in the peculiar position of having raised more money — $615 million total — than its current valuation.
The company sells $3,995 workout stations that let users connect virtually to a personal trainer for a monthly fee. Demand surged during the pandemic but has since cooled off, a situation exacerbated by supply chain challenges.
Tonal previously explored a sale to Peloton that didn’t materialize in part because the latter is facing its own cash flow problems. Peloton’s stock is down 92.7% since the start of 2021.
Tonal’s investors include private equity firms L Catterton and Dragoneer Investment Group, as well as athletes such as LeBron James, Serena Williams, Mike Tyson, and Drew Brees. The two firms led the most recent round, along with Cobalt, Kindred Ventures, and THVC.
The cash infusion also came with a leadership change: Tonal’s president, Krystal Zell, is becoming its CEO, replacing Aly Orady, who is shifting to its Chief Technology Officer.