Tonal is today announcing its Series C financing that it hopes will allow the company to bring its at-home gym to even more homes. The funding round shows investors’ excitement around the new generation of personal exercise equipment that combines on-demand training with smart features. Tonal, like Peloton, offers features previously unavailable outside of gyms, and with this injection of capital, the company expects to build new personal features and invest in marketing and retail experiences.
L Catterton’s Growth Fund led the $45 million Series C round, which included investments from Evolution Media, Shasta Ventures, Mayfield, Sapphire Sport and others. This financing round brings the total amount raised to $90 million.
Tonal is based out of San Francisco and was founded by Aly Orady in 2015. The company launched its strength-training product in 2018. The wall-mounted Tonal uses electromagnetism to simulate and control weight, allowing the slender device to replicate (and replace) a lot of weight-lifting machines.
The Tonal machine costs $2,995, and for $49 a month, Tonal offers members access to personal training sessions, recommended programs and workouts. Since launching, CEO Orady tells TechCrunch there have been virtually no returns. He says their customer care teams proactively work with members to ensure a good experience.
Orady is excited to have L Catterton participating in this financing round, saying their deep network and unparalleled experience building premium fitness brands globally is an incredibly exciting new resource for the company. The Connecticut-based investment firm helped fund Peloton, ThirdLove, ClassPass and The Honest Company.
“As the fitness landscape continues to evolve, we have seen a clear shift toward personalized, content-driven, at-home workout experiences,” said Scott Dahnke, Global co-CEO of L Catterton in a released statement. “Tonal is the first connected fitness brand focused on strength training and represents an opportunity to invest behind an innovative concept with tremendous growth potential. We look forward to leveraging our deep knowledge of consumer behavior and significant experience in the connected fitness space to bring Tonal’s dynamic technology and content platform to more homes across the country.”
Tonal shares a market with Peloton, and Orady says a significant amount of Tonal owners also own Peloton equipment. Yet, feature-by-feature, Peloton and Tonal are different. While they’re both in-home devices that offer on-demand instructors, Peloton targets cardiovascular exercises while Tonal is a strength-training machine. Orady states his customers find the two companies offer complementary experiences.
“The common thread with our members is that they understand the value of investing in their fitness and overall health,” said Aly Orady, “All of our members are looking to take their fitness to the next level with strength training. Tonal offers the ability to strength train at home by providing a comprehensive, challenging full body workout without having to sacrifice quality for convenience.”
This is an enormous market he says the company can rely on for years to come. The majority of Tonal’s customers are between 30 and 55 years old and live in, or adjacent to, the top 10 major metro U.S. markets. There’s an even split, he says, between male and female members.
Tonal is similar to Mirror, another at-home, wall-mounted exercise device that costs $1,495. While Tonal focuses on strength training through resistance, Mirror offers yoga, boxing, Pilates and other exercises and activities with on-demand instruction and real-time stats. Mirror also launched in 2018 and the company has raised $40 million.
Going forward, Tonal expects to expand its software to provide new personalization features to its members. The hope is to build experiences that motivate users while serving up real-time feedback. This includes building new workout categories and additional fitness experiences, even when users travel and don’t have access to their Tonal machine.
The company sees it expanding its retail and marketing presence. Right now, just eight months after the product’s debut, customers have very limited access to try the Tonal machine. It’s only on display at Tonal’s flagship San Francisco store and is coming to a pop-up store in Newport Beach, Calif.
Tonal is hiring and looking to hire in hardware, software, design, video production and marketing.
At-home exercise equipment is a massive market, and Tonal offers a unique set of features and advantages that should allow it to stand apart from competitors. This isn’t just another treadmill. Tonal is a strength-training super machine the size of a thick HDTV. Challenges abound, but the company seemingly has a solid plan to utilize its latest round of financing that should allow it to reach more customers and show them why the Tonal machine is worth the cost.