Casper Becomes Third Retailer In Two Weeks To Reach ‘Unicorn’ Status
Casper is joining Glossier and Rent the Runway as the latest digital native retailer to be valued at $1 billion, on the heels of a new $100 million Series D funding round. With the cash infusion, Casper is now valued at $1.1 billion, and seeks to use the funding to scale its global expansion efforts across brick-and-mortar, e-Commerce and wholesale.
The funding and valuation come as Casper is seeking to hire underwriters for an IPO, according to Reuters.
{loadposition GIAA}Existing investors Target, New Enterprise Associates, IVP and Norwest Venture Partners led the round. Casper's total funding to date has reached $340 million. Target had led Casper’s $170 million Series C funding in June 2017, reportedly pitching in $75 million. Prior to that investment, Target reportedly offered to buy Casper for $1 billion.
Concurrent with the fundraising, Casper is adding two independent directors to its board: Karen Katz, former CEO of Neiman Marcus Group, and Dani Reiss, Chairman and CEO of Canada Goose. Reiss and Gordon Segal, Co-Founder and former Chairman of Crate & Barrel, were also investors in the round.
Casper’s 2018 revenue topped $400 million, according to a company statement. While Casper operated at a $64 million net loss last year, according to The Information, the company anticipates becoming profitable on an EBITDA basis in 2019 and forecasts revenue of $556 million this year.
The company operates more than 20 physical stores, but has outlined a plan to open 200 stores across North America through 2021. Additionally, Casper sells products within Target and Hudson’s Bay stores as well as on Amazon. While Casper doesn’t presently have a physical presence outside North America, Co-Founder and CEO Philip Krim told CNN that the company wants to grow in Europe and Asia.
Competition in online mattress sales has been increasing, with players such as Tuft & Needle, Leesa, Purple, Nectar Sleep and even Walmart’s Allswell brand in the mix. Casper is seeking to differentiate itself by offering more tech-focused sleep products and gadgets for customers' bedrooms. For example, Casper recently debuted a "glow light," an app-connected night lamp starting at $99, designed to help people fall asleep more easily.