Fitness company Tonal is looking to raise $100 million in financing in a deal that would value the company at $1.9 billion, according to Bloomberg.
The potential funding round for Tonal — already backed by a star-studded group of investors including Serena Williams, LeBron James, Mike Tyson, and Drew Brees — is expected to include existing investors like private equity firm L Catterton and Dragoneer Investment Group.
- The round will allow Tonal to continue growing amid ongoing supply chain constraints.
- It is subject to terms, including the latest investors being paid first if Tonal is ever sold.
- In March 2021, Tonal raised $250 million in Series E funding at a $1.6 billion valuation.
- To date, the company has raised $450 million in fresh capital.
In July, Tonal announced it’s slashing 35% of its workforce and plans to cut back on advertising to alleviate customer acquisition costs, according to CNBC. Before the pandemic, Tonal’s workforce stood at just over 110 employees and currently sits at roughly 750.
The San Francisco-based company has yet to become profitable since its launch in 2015.
Changing Pace
Tonal adds to a growing list of connected fitness companies restructuring their businesses following an initial pandemic boon.
In August, Peloton announced that it will raise prices and cut nearly 800 jobs, while Equinox-owned SoulCycle will reportedly be closing 19 of its 83 studios in the U.S. and Canada.
