OAKLAND, Calif. (Reuters) – Digital gym-on-a-wall startup Tonal, which sports big names like Stephen Curry, Klay Thompson and Serena Williams as investors, said on Wednesday it raised $250 million in its latest round of funding, valuing the company at $1.6 billion.
The San Francisco startup’s CEO, Aly Orady, said the company’s revenue last year jumped eight times the level of 2019, with the pandemic forcing people to work out at home.
According to data firm PitchBook, home exercise startups raised $3.02 billion in venture capital globally last year, up from $1.79 billion in 2019.
“My sense is that the market is over-reacting to reopening,” said Orady, adding that Tonal’s sales momentum is holding up even with the vaccine rollouts. “We don’t believe that people were switching to at-home-fitness temporarily during COVID and intended to go to gyms. It’s accelerated a shift in people’s mindset toward working out at home,” he told Reuters.
The company said it plans to use the fresh capital to accelerate its marketing efforts, to open more brick-and-mortar stores, and to invest in logistics and manufacturing to meet what it says is unprecedented demand. The funding also brings Tonal one step closer to an initial public offering, according to its CEO, who declined to offer a firm timeline on when that might take place.
Source: Reuters, CNBC