The self-proclaimed “Nike of sleep” proves there’s no such thing as a $1 billion mattress company
Published in · 4 min read · Nov 18, 2021
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Casper — the original DTC darling and self-proclaimed “Nike of sleep” — is now proof that there’s no such thing as a $1 billion mattress company.
In a whirlwind two years, the mattress-in-a-box company has gone from being the lead disrupter in the ‘sleep economy’ with a value of $1.1 billion, to a sale to a private equity firm for around $300 million. To put its downfall into context, the company has been sold for less than it raised in capital ($350 million). In the deal, which is expected to be concluded in early 2022, the firm agreed to pay $6.90 per outstanding share, a nearly 90% premium on the current stock price of $3.55. In short, it could have been even more of a nightmare.
Despite its lofty dreams to “awaken the potential of a well-rested world” (giving WeWork’s “elevate the world’s consciousness” a run for its money), the company has failed to deliver. The writing was on the wall ever since it went public in 2019 with a lackluster IPO that valued the company at half of its peak valuation. For starters, it has never been profitable, losing $92 million in 2018 and over $70 million in 2019. It even warned in its S-1 filing…
