Casper files to go public with eye on expansion

Casper files to go public with eye on expansion

Casper files to go public with eye on expansion

The stock will be listed under "CSPR" on the New York Stock Exchange.

Casper sells mattresses and other sleep-related products directly to consumers.

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Casper Sleep Inc, the online mattress retailer whose investors include actor Leonardo DiCaprio and rapper 50 Cent, on Friday filed for an initial public offering with USA regulators.

The New York-based starup launched in April 2014 after raising nearly $2 million from venture capital firms and angel investors, including rapper Nas and actor Ashton Kutcher.

Although revenue has grown fast - it brought in $358 million in annual sales in 2018, up 38.7% from the prior year - the company has yet to make money. In a statement with the Securities and Exchange Commission, the company said it lost $92.1 million in 2018 and $73.4 million in 2017, with net revenue of $357.9 million in 2018 and $250.9 million in 2017. For the first nine months ended September 30, it had sales of $312.3 million.

Founded in 2014, Casper proved naysayers wrong that no one would buy a mattress online. Its direct-to-consumer model earned it the nickname the Warby Parker of mattress companies. Casper now offers four mattresses, pillows and sheets, a glow light and even a dog bed. Casper has the highest sales of online mattress brands like Purple and Nectar, but its share of the total market for selling mattress online slid to 5% in 2019, according to Rakuten Intelligence.

As Casper has expanded its offerings, it also has expanded in brick-and-mortar.

A chart later in the IPO shows that the domestic sleep market is also expected to grow at a rate well above the U.S. economy's 2.1%, at 3.6%. The company has served 1.4 million customers in seven countries in its first five years. Peloton blew $US324 million before its IPO, while WeWork spent $US378.7 million in 2019 before its offering failed to launch.

The company highlights the global sleep economy is estimated to be worth $432 billion in 2019, growing at a CAGR of 6.3% to $585 billion by 2024. This graphic shows how it aims to grow its offerings in the future.

The company reached a $1.1 billion valuation in a private financing round past year.

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