At-home fitness startup Tonal raised $250 million in a new round of funding, giving the company a $1.6 billion valuation.
The wall-mounted system, which launched in 2015, uses advanced technology to replicate equipment, exercises, and weights found at brick-and-mortar gyms.
The funding round was led by VC firms Dragoneer, Cobalt Capital, and Sapphire Ventures and also included former NFL quarterback Drew Brees, Wimbledon champion Maria Sharapova, WNBA champion Sue Bird, and boxing legend Mike Tyson. Amazon’s Alexa Fund and three-time NBA champ Steph Curry are long-time investors as well.
“We’re pouring a lot more capital into marketing and brand awareness, and we’re pouring a lot more capital into scaling our supply chain to get ready for the next phase,” CEO and founder Aly Orady told TechCrunch.
The San Francisco-based company experienced a drastic increase in demand due to the at-home fitness boom during the pandemic. Tonal system sales increased 800% between Dec. 2019 and Dec. 2020.
Tonal is now considering when to go public. “We’re going to IPO at a time when it’s best for the business because being a public company can be incredibly distracting,” said Orady.
Lululemon, which acquired Tonal competitor Mirror for $500 million last summer, said that its connected fitness setup brought in $170 million in 2020. The company expects Mirror revenue to reach up to $275 million in 2021.
“Guests were seeking more convenient at-home options before COVID-19, and they will continue to seek these options post the pandemic,” said Lululemon CEO Calvin McDonald.