Leesa, an online mattress startup, raised $9 million round of funding led by private equity firm TitleCard Capital and became the largest online mattress retailer to secure venture capital money.
Leesa was one of the six winners among the thousands of participants that contested in the competition by Shopify, one of the world’s leading platforms for commerce. The competition was to start a new company and sell their products under Shopify and the one who sold the most over a two month period between October 2014 and May 2015 were declared as winners. Leesa made its formal launch only in January and reached a sales of $2 million by May. With the July sales which is 100% more than that of May, Leesa is already on the path to make more than $30 million in sales in its year of launch.
“We are truly humbled by the recognition of our success, having launched just six short months ago,” said David Wolfe, the CEO and co-founder of the startup. “The work our team has done has been nothing short of remarkable, and it is a great honor to receive such recognition. It’s even more exciting to be rewarded with mentoring from Sir Richard Branson and a host of all-star entrepreneurs at Necker Island, Branson’s private retreat.”
He also added, “Lessa has been a runaway success and is the most exhilarating business I’ve been involved in, by far. It’s unbelievable to think that after just six months, we are on track to achieve $30 million in sales in our first year and have helped more than 11,000 people sleep better.”
Founded by entrepreneur David Wolfe and industry veteran Jamie Diamonstein, the mattress startup is disrupting the industry by fundamentally redesigning the mattress from the inside out. This UK-made affordable luxury product is compressed, boxed and delivered directly to customers for an enjoyable experience. With the new funds, the business is now looking at expanding in USA as well as other places globally.
“We are so impressed by the company that Leesa has been able to build in such a short period of time,” said Harley Finkelstein, the Chief Platform Officer of Shopify. “The mattress industry is an exciting place right now and it’s awesome that Leesa is using Shopify to disrupt this multi-billion dollar industry.”
A double mattress cost around $900 and comes in all sizes with 100-night risk free in-home trial, backed by a full refund policy and free returns. Leesa’s niche lies in the company’s commitment to the community. Leesa’s successful launch and quick growth has helped jumpstart its social impact program, dubbed Leesa One-Ten, where the company donated one mattress for even ten sold to the charity.