Digitally Native Mattress Firm Resident Raises $130 Million

Digitally native mattress and home goods brand platform Resident landed a $130 million investment headed up by Nexus Capital Management and Ion Crossover Partners with participation from Baron Capital Group in Q4 of 2020, according to a Thursday (Jan. 7) announcement.

“This capital infusion is a testament to our accomplishments, market positioning and momentum in a competitive and visible category,” Resident Co-Founder Ran Reske said in the announcement.

As part of the arrangement, Nexus Capital Management and Ion Crossover Partners representatives will become a part of Resident’s board.

Resident has primarily operated with a telecommuting workforce since launching in 2016, and the company says it has made it a practice to bring the best people onboard regardless of geographic area. That mindset enabled Resident to grow its workforce with those knowledgeable in their fields and to maintain normal daily operations during the pandemic, according to the announcement.

Moreover, the company says it put a “multi-brand strategy” into place to service the overall available market instead of seeking to attract only a single part of the market. This strategy brought about the expansion of natural and organic mattress collection Awara, luxury hybrid mattress label DreamCloud and gel-memory foam mattress label Nectar.

“Over the past four years, we drove Resident to profitability through a combination of data-driven performance marketing coupled with product and operational excellence. Our key to success is our ability to find in-market customers and offer them exceptional products at a great value,” Resident Co-Founder Eric Hutchinson said in the announcement.

In separate news, digitally native sleep company Purple Innovation, Inc. reported as part of its Q3 results that its direct-to-consumer (D2C) sales jumped by 97.5 percent and its wholesale revenue increased 6.9 percent in contrast to Q3 2019. The company’s gross margin for Q3 increased to 47.2 percent from 45 percent in the year-ago period.