AAA Tonal gains $250m in series E round

Tonal gains $250m in series E round

Tonal, a US-based home fitness technology producer backed by e-commerce firm Amazon and talent agency Creative Artists Agency, secured $250m yesterday in a series E round valuing it at $1.6bn.

Investment firm Dragoneer led the round, which included Cobalt Capital, L Catterton, Sapphire Ventures and undisclosed professional athletes. It said it has now raised more than $450m altogether.

Founded in 2015, Tonal sells an all-in-one workout system capable of mimicking traditional gym equipment and generating more than 90kg of resistance. It can facilitate hundreds of work programmes and can automatically adjust the weight used in each exercise in real-time.

The company will use the capital for marketing and content production activities as well as investments in its recruitment, logistics and manufacturing activities.

Amazon’s Alexa Fund and Evolution Media, a joint venture between Creative Artists Agency and growth equity fund TPG Growth, participated in a $110m funding round for Tonal in September 2020.

L Catterton’s Growth Fund also backed the September round alongside Sapphire Sport, a sport-focused investment vehicle managed by Sapphire Ventures, Shasta Ventures Mayfield, THVC, Delta-v Capital, Mousse Partners, Stephen Curry, Paul George and Michelle Wie.

Tonal had closed a $49m series C round in April 2019 led by L Catterton, which invested together with Evolution Media and existing backers Shasta Ventures, Sapphire Ventures, Mayfield and Serena Ventures. The company’s earlier investors also include Bolt Capital, Next Play Capital and Upside Partnership.