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.
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.