Tonal, a connected home fitness system, raised $250 million in the latest funding round, valuing the company at $1.6 billion.
Tonal has raised over $450 million to date. According to the company, the capital will further accelerate marketing and content initiatives while scaling the business and operations by investing in people, logistics, and manufacturing to meet its unprecedented demand more quickly.
The Series E round was led by Dragoneer, a growth-oriented investment firm, with participation from Cobalt Capital, new athlete investors, and existing investors, including L Catterton and Sapphire Ventures.
Tonal 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 in the fitness category.
Using a proprietary digital weight system instead of metal weights, Tonal can generate 200 pounds of resistance and replicate every machine in the weight room with a fraction of the equipment. More intelligent than dumbbells and better than bodyweight, Tonal leverages AI to dynamically adjust the weights for each exercise in real-time for your most effective workout.
“Our growth over the last year underscores the changing fitness landscape. People want smarter, more connected ways to work out,” said Aly Orady, CEO of Tonal. “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.”
“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,” said Jared Middleman, Partner at Dragoneer.
Jared Middleman added: “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.”
Digital wellness providers have raised nearly $3 billion since 2012, according to the Marcom funding data. Recently, BurnAlong, an online employer-focused wellness platform, announced a $7 million fundraise led by Triventures.