Online mattress retailer Casper Sleep Inc has secured $55 million in Series B venture funding led by Institutional Venture Partners (IVP) and also includes Leonardo DiCaprio, Tobey Maguire, Adam Levine, Scooter Braun and Pritzker Group Venture Capital. The current prevailing investors like New Enterprise Associates (NEA), Lerer Hippeau Ventures, Norwest Venture Partners, Vaizra Investments, SV Angel, Slow Ventures and Queensbridge Ventures also participated in the round.
Launched in 2014, the sleep startup Casper chucks the middlemen and delivers foam mattress in the box directly to the consumers. The startup is one of the fastest growing consumer brands of all time by reaching $1 million in revenue in its first 28 days. The company was able to build an instant relationship with the consumers by delivering its ‘bed in the box’ style mattress around New York within hours of the order placed and attached its current run rate at around $100 million.
Casper won various design awards for its first eponymous mattress and has gained popularity for the universal comfort of the mattress. Many consumer reports stated that, “Casper has a winner in this memory-and latex-foam mattress, which scored impressively across the board.” This popular mattress was designed and engineered in-house by former IDEO inventors. The company has patented the sleep surface which is made in USA and unites memory and latex foams to sleep cool and provide perfect support. The startup that does not charge extra for shipping uses UPS or bike messenger in a mini fridge-sized box and is backed by a 100-day in-home trial period along with a 10-year warranty.
Philip Krim, co-founder and chief executive of Casper said the company now aims to become “the global brand that’s about the best of everything when it comes to sleep,” not just mattresses on demand. With the new funds, the startup aims to widen its innovation arm, Casper Labs and engineer, test and launch new products on a faster timeline. It also plans to increase the employee’s headcount to more than the current 75 and is also looking forward to expand internationally.
“Since our launch 14 months ago, Casper has been inundated with requests for more sleep products. We are excited to launch new products with the same dedication to design and engineering that allowed us to develop our universally comfortable mattress. And we are equally thrilled to bring these products to a larger audience,” said Krim. Last year, Casper announced $13.1 million in a Series A round. On the whole, the company has raised $69.95 million. In near future, the company has plans to sell pillows and sheets apart from its latex and memory foam mattress.
Dennis Phelps, General Partner at Institutional Venture Partners who apart from being investor has joined the statup’s board of directors as an observer. He said, “Casper’s meteoric rise is the direct result of its exceptional ability to hit a nerve with alienated consumers. It is already conquering the US mattress market with its category-owning brand and is poised to meet the overwhelming demand for international disruption of this industry.”