Startups 100 winner eve Sleep mattress rival Leesa clinches £17.6m
The Manchester-based start-up, which also operates in the US, Canada and Germany, donates mattresses to the homeless for one in every 10 sold
Leesa, an online mattress start-up which has its manufacturing base in Glossop, Derbyshire, has secured a whopping £17.6m as it looks to take on fast-growing competitors such as eve Sleep; the AIM-listed business which took the top spot in the Startups 100 2017 index.
Led by One Better Ventures, the Series B round also attracted investment from Blake Mycoskie; the founder of Toms Shoes.
Founded by David Wolfe and Jamie Diamonstein – who previously spent years working for a bedroom furniture retailer – Leesa is a by-the-box mattress company which retails its products at £390 for a single rising to £740 for a super king-size.
Similarly to its mattress rivals eve Sleep, and up-and-coming mattress brands such as Startups 100-ranked Simba, Leesa specialises in mattresses which are rolled and folded into a tight box that can be delivered directly to its customers in the UK, US, Canada and Germany in as little as two days.
It also offers a 100 night free trial – the same offer which quickly saw eve Sleep rise in popularity – but claims its social enterprise arm helps it stand out in the market. It donates one mattress to a homeless shelter for every 10 sold, with 17,000 mattresses donated so far.
The start-up has offices in Manchester, UK, and Virginia in the US and currently employs 32 staff.
The investment, which takes its valuation to $45m after it raised a $9m Series A round earlier in the year, is set to help the company achieve its goal of reaching $200m in sales.
Wolfe commented: “We are humbled and invigorated by the extraordinary response Leesa has received in such a short period of time, and we are excited to use this round of funding to broaden our reach to customers and influencers alike as well as expand into the retail category.
“As a company that values its impact on the world as much as its financial prosperity, we are also thrilled to be able to use this success to drive toward our audacious goal of ending homelessness.”
By comparison, two-year old eve Sleep – the first direct to consumer to mattress box to retail in the UK – has raised over £50m (including £35m through its recent AIM listing), employs 80 staff and trades in 10 countries.
Speaking to Startups.co.uk in May this year, eve Sleep CEO Jaz Bagniewski told us that its brand “is what separates it from competitors”: “most mattress companies are quite literally sleepy.”
Challenger brand Simba, which featured in fifth place in the Startups 100 2017 index, is also making major in-roads. Backed by £17.5m in funding, Simba claims its mattresses to be “the most advanced in the world” with foam technology which is supported by the Sleep to Live Institute.
Who will reign supreme in the battle of the beds? Watch this space…