According to an exclusive report by The Information, Tonal, a celebrity-backed home fitness start-up, has explored options, including a sale. According to the report, the company spent heavily last year on new brick-and-mortar showrooms, new hires and marketing, including a commercial featuring Serena Williams, and has been trying to cut costs. Based in San Francisco, Tonal was launched in March 2015 by Aly Orady, who also serves as the company’s chief executive. The company experienced rapid growth in sales during the pandemic when demand exploded for at-home fitness equipment. In 2021, Tonal raised $250 million of new funding in a Series E round, which ballooned its valuation to $1.6 billion. Participants included Cobalt Capital, Dragoneer Investment Group, L Catterton, Sapphire Ventures and athlete investors Drew Brees, Larry Fitzgerald, Maria Sharapova, Mike Tyson and Sue Bird. The connected fitness platform claimed to be worth US$1.9 billion last year.

Topics