Big box retailer Target is set to lead a “large” funding round for high-grade mattress producer Casper in the upcoming weeks, Recode has reported, citing multiple sources.
Founded in 2013, Casper has developed a high-grade memory foam mattress as well as pillows and sheets, all of which it began selling through its online platform the following year.
The company recorded about $200m in sales in 2016, according to the sources, and Target agreed last week to begin selling the bedding through its web portal and select brick-and-mortar outlets from next month.
Target had held serious discussions with Casper over an acquisition in the past few months and at one point offered $1bn to buy the company only for the businesses to be unable to reach an agreement, according to the sources.
Casper has so far raised $70m in funding, most recently closing a $55m series B round in mid-2015 that was led by Institutional Venture Partners at a $555m valuation.
Norwest Venture Partners, Lerer Hippeau Ventures, New Enterprise Associates, Slow Ventures, SV Angel, Vaizra Investments, Queensbridge Ventures, the Pritzker Family and various angel investors also participated in the round.
The deal will come at a time when Target’s largest rival, Walmart, is looking to expand its online presence through a series of large-scale acquisitions, including e-commerce platform Jet and online fashion retailers Bonobos and Shoebuy.
– Photo courtesy of Casper