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Tonal is seeking fresh funding: Bloomberg
Posted on Thursday, 21 May 2020 09:55
Tonal, a wall-mounted home workout system, is talking with potential investors about raising new equity, people familiar with the matter told Bloomberg.
According to the sources, the San Francisco-headquartered business could be valued at USD 250.00 million in a fresh round of funding.
Companies including private equity firm L Catterton have been in discussions with Tonal regarding the financing, the insiders noted, asking not to be identified as the situation is still private.
However, when contacted by Bloomberg spokeswomen for both companies declined to comment.
Tonal makes an at home wall-mounted station that employs artificial intelligence and allows users to strength train both the upper and lower body.
The business competes with Lululemon Athletica and charges USD 49.00 per month for virtual personal training sessions, this is on top of the USD 2,995 paid for the workout equipment itself.
As a result of the coronavirus pandemic that has resulted in lockdown orders across the US, among many other countries, there has been an increase in sales for Tonal as gyms close and people look for alternatives ways to keep fit.
Chief executive Aly Orady said in April that the company’s average daily sales has more than tripled during the stay-at-home period.
Tonal’s system allows its users to access a digital weight programme to lift as much as 200 pounds.
In April last year, the group closed it third round of funding to raise USD 45.00 million at a USD 185.00 million valuation.
Companies such as L Catterton, Evolution Media Capital, Shasta Ventures Management and Sapphire Ventures took part in the cash call.
Zephyr, the M&A database published by Bureau van Dijk, shows there have been 70 deals targeting sporting and recreational goods and supplies merchant wholesalers announced worldwide in 2020 to date.
In the largest of these, Anhui Andeli Department Store agreed to transfer business assets and liabilities in China to Anhui Andeli Industry and Trade in a deal worth CNY 6.58 billion (USD 926.69 million), including CNY 3.11 billion of debt.
Hong Kong-based Ufct Technology, China’s Tianjin Jinnan Trading and US-headquartered Pool, among others, were also targeted in the year so far.
© Zephus Ltd