US-based mattress manufacturer Casper has collected $75m in funding from a consortium led by retail chain Target, according to Recode.
Lerer Hippeau Ventures, Institutional Venture Partners (IVP) and New Enterprise Associates (NEA) have also supplied cash to the round, which has a target size of at least $100m. Casper is aiming to raise the remaining capital from new investors.
Target had initially made a $1bn acquisition bid for Casper but when the two companies could not agree on the terms, Target decided last week to lead a funding round instead.
Casper, established in 2013, has created a high-grade memory foam mattress that are shipped to consumers folded up in a box. The company also manufactures pillows and sheets.
Target is set to start selling the mattresses through its online and physical stores.
Casper previously secured a total of $70m in funding, most recently closing a $55m series B round in 2015 led by IVP at a $555m valuation.
The series B round also included NEA, Lerer Hippeau, Norwest Venture Partners, Slow Ventures, SV Angel, Vaizra Investments, Queensbridge Ventures, the Pritzker Family and assorted private investors.