By CultureBanx Team
- Tonal, the smart home gym-maker backed by LeBron James, Serena Williams and Steph Curry is looking to raise $100M at a $1.9B valuation
- The home fitness equipment market expected to reach a value of $23.27B by 2025
Tonal, the strength training home fitness company with several professional athlete superstars on its cap table, is looking to raise $100 million of financing in a deal that would value the company at $1.9 billion, according to Bloomberg. The star-studded group of investors including Serena Williams, LeBron James, Steph Curry and Mike Tyson have spurred existing investors like private equity firm L Catterton along with investment firm Dragoneer Investment Group to take Tonal to the next level.
Why This Matters: Back in March 2021, the company was valued at $1.6 billion following a $250 million Series E funding round. To date, Tonal has raised $450 million in fresh capital. The company had a growing list of more than 30 elite athlete investors and brand ambassadors who turned to Tonal to support their training. All of these athletes are banking on the home fitness equipment market’s continued growth, along with the fact that Tonal’s system sales increased 800% between December 2019 and December 2020.
The company cut 35% of its workforce back in July of this year. With the home fitness equipment market expected to reach a value of $23.27B by 2025 and Tonal claims to have 90% market share in the connected strength category, it’s possible their dominance could be slipping away?
What’s Next: Competition is steep in this space with brands like Peloton (PTON +17.34%), Tempo and Vi. Peloton is joining Tonal in reducing its headcount by 800 employees in order to slash expenses and readjust to new levels of consumer demand.
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