Target extends its investment in online retail disruptor
Fast-growing mattress retailer Casper has closed on a new round of funding — with help from Target Corp.
Casper said it has closed a $170 million Series C investment round, led by Target. The company announced the news on Monday, the day after, as previously announced, Target began selling Casper products in its stores and on its website. Some high-profile entertainers and athletes also joined in the funding round, including Kevin Spacey, Carmelo Anthony, and Shaun White.
The latest round brings Casper's funding to date to $240 million. The new round values Casper at approximately $750 million, not including the new investment, according to the New York Times, which cited a person with knowledge of the financing. The report also said that Casper is aiming for an initial public offering "down the road."
With the new investment, Casper is planning to expand its research and design capabilities with the launch of a design lab in San Francisco, a facility and engineering team dedicated to developing new products to complete the Casper ecosystem — from re-designed soft goods to the future of connected sleep. The funding will also enable the digitally-first brand to traverse online and offline distribution at scale.
Casper, which launched in April 2014, earned $100 million in 2015, and doubled its annual revenue to more than $200 million in 2016. In addition to its mattress, it now offers a line of core sleep products, including the Casper pillow, sheets, foundation, bed frame, duvet, and dog mattress.
"Innovation has always been our catalyst for growth," said Philip Krim, CEO and co-founder of Casper. "As we look ahead to Casper's next chapter, we see the future of sleep driven by unparalleled R&D, and an evolved consumer experience."