- $1 billion startup Casper is going public.
- The company filed paperwork with the US Securities and Exchange Commission to start trading on the New York Stock Exchange.
- Casper did not say how much money it plans to raise in the offering or the valuation it is seeking.
- Casper sells mattresses and other sleep-related products directly to consumers.
Casper, the online mattress retailer, has filed to go public.
On Friday, the buzzy sleep startup filed paperwork with the US Securities and Exchange Commission to start trading on the New York Stock Exchange. It plans to list its common stock under the ticker symbol "CSPR." Casper did not say how much money it plans to raise in the offering or the valuation it's seeking.
The company's S-1 filing showed that while its net revenues grew to $357.9 million in 2018 from $250.9 million in 2017, net losses also increased to $92.1 million in 2018 from $73.4 million in 2017. For the first nine months of 2019, net revenues reached $312.3 million and net losses were $67.4 million.
Casper started selling mattresses online and shipping them to customers in boxes in 2014. Its direct-to-consumer model earned it the nickname, "the Warby Parter of mattress." Since then, Casper has become a disruptor in its own right. The company delivered mattresses to more than 1.4 million customers and opened 60 retail stores where customers can try out the beds. It also added pillows, sheets, weighted blankets, night lights, and other sleep-related products to its online catalog.
Still, there's no sleep for the startup as it fends off nearly 200 companies trying to sell mattresses online. 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. It trails Amazon, which sells Casper products in addition to its own offerings, and Sleep Number.
How Casper will spend its IPO money
The next cash infusion will allow Casper to grow its staff, develop new products, more than triple its number of stores, and expand from seven to more than 20 countries, according to the S-1 filing.
It's also making room in the marketing budget. In 2018, Casper spent $106 million on sales and marketing -- about one-third of its net revenue that year. That spend exploded 23% to $113.9 million in the run-up up to its IPO between January and September 2019.
Business Insider's Tanya Dua wrote that its marketing spend was "modest" in comparison to other companies that have tried to go public recently. Peloton blew $324 million before its IPO, while WeWork spent $378.7 million in 2019 before its offering failed to launch.
Casper's filing describes the global "sleep economy" as a $432 billion business, part of a trio of wellness solutions including nutrition and fitness that have secured rich valuations in recent years. This week, ClassPass, the startup that lets members access a variety of workout classes for a monthly fee, joined the pantheon of unicorns -- or startups worth more than $1 billion -- with a new $285 million investment. It's eyeing a public offering in the future.
Casper has raised $355 million from investors including Lerer Hippeau, New Enterprise Associates, IVP, and Target, and was last valued at $1.1 billion.