At-home fitness startup Tonal needs a reboot.
The company’s valuation peaked at $1.9 billion in September behind a $100 million funding round. Five months later, Bloomberg is reporting that company’s seeking funds at a valuation of $500 million or less.
Much of the decline can be attributed to the connected fitness trend fizzling — a post-pandemic reality that’s also challenging Peloton.
This news comes after Tonal cut 35% of its workforce last summer. Talk of a potential IPO has quieted in recent months, as well.
Tonal’s investors include LeBron James, Serena Williams, Mike Tyson, and Steph Curry.
Peloton was in talks to acquire Tonal last year, per Bloomberg.
The leading reason an acquisition didn’t work out was that Peloton — which has failed to turn a profit for eight consecutive quarters — was looking to improve its cash position amid a continued restructuring.
