San Francisco-based Tonal — which offers a $2,995 exercise station with subscription-based workouts — is looking for more funding as the COVID-19 crisis upends the world of exercise. As PYMNTS has reported, the pandemic has created new opportunities for the exercise equipment industry.
According to a Bloomberg report, Tonal is in talks with investors for funding that would value the company at $250 million or more. Discussions are taking place with Connecticut-based L Catterton, which was a key player in Tonal’s $45 million venture capital funding round in 2019.
Tonal charges $49 per month for virtual personal training sessions. Its competitors include Lululemon- and Athletica-backed Mirror and FORME Life. Average daily sales more than tripled in April as stay-at-home orders took hold, according to the company.
When Tonal announced its $45 million deal in April of 2019, the company said it is “disrupting the connected fitness category by establishing the only on-demand personalized strength training system.” In a prepared statement, the company said the funding would “fuel the company's growth after its recent expansion of delivery to all 48 contiguous states.”
"There is nothing like Tonal on the market today. We are the first AI-powered connected-strength company," said Aly Orady, founder and CEO of Tonal. He added that the company’s mission is to “create the first truly personalized fitness concept by delivering smart on-demand video guidance, actionable data and real-time feedback.”
"As the fitness landscape continues to evolve, we have seen a clear shift toward personalized, content-driven, at-home workout experiences," added Scott Dahnke, global co-CEO of L Catterton.
As PYMNTS has reported, the global fitness industry is worth roughly $100 billion a year. According to the International Health, Racquet and Sportsclub Association, a quarter of all Americans regularly go to the gym, but the industry has largely been shut down in recent weeks due to the COVID-19 crisis. As a result, there has been a spike in demand for home exercise gear such as yoga mats, free weights, resistance bands and exercise balls.
But the shutdown has also led to difficulties in buying high-end equipment. Peloton, for example, offers “connected” fitness bikes that allow consumers to tap into live classes and pre-recorded content. However, the company is struggling to keep up with the soaring demand.