Fitness Firm Tonal Seeking $1.9 Billion Value With Financing (1)

Home fitness business Tonal Systems Inc. is raising financing that would value the company at about $1.9 billion, according to people familiar with the matter.

The fresh funding is expected to exceed $100 million and would give Tonal the capital to continue growing as it deals with supply-chain challenges, said the people, who asked to not be identified because the matter isn’t public. Tonal said it raised $250 million at a $1.6 billion valuation last year.

Existing investors Dragoneer Investment Group and L Catterton are expected to participate in the latest round, the people said. The round includes terms favoring ...