Series B financing will allow digitally native company to further strengthen performance marketing capabilities, expand retail footprint and scale infrastructure
SAN FRANCISCO, Jan. 7, 2021 /PRNewswire/ -- Resident, a platform of digitally native brands in the mattress and home goods market, today announced that in Q4 of 2020 it received an investment of $130 million led by Ion Crossover Partners and Nexus Capital Management with participation from Baron Capital Group. The funds will be used by the company to execute Resident's growth plan, expand its brick-and-mortar retail footprint and strengthen its supply chain and infrastructure to deliver a better customer experience.
The funding round follows a banner year for Resident, registering tremendous sales growth of over 100% compared to 2019. 2020 was also a year of exponential growth in Resident's retail presence, with its products available on the floors of many of the largest bedding retailers in the US.
"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 great value," said Eric Hutchinson, Resident Co-Founder. "The quality and stature of our newest investors shows a true vote of confidence in our business model and continued success."
"COVID has generated tremendous momentum for ecommerce companies worldwide," added Hutchinson, "and our focus on data-driven performance marketing allowed us to react to market trends faster than others. The increased demand also forced us to drive efficiencies across every area of the business, which will create benefits for years to come."
Since its inception in late 2016, Resident has operated primarily with a remote workforce, making it a principle to hire the best talent regardless of location. That approach made it very easy for the company to scale its team with domain experts and had the unexpected benefit of keeping daily operations business-as-usual in spite of the pandemic disrupting the typical office environment.
Additionally, throughout the company's growth, it enacted a multi-brand strategy that offered options to service the total available market vs. courting one market segment. This led to the growth of Nectar, the company's premiere gel-memory foam mattress brand, as well as DreamCloud, Resident's luxury hybrid mattress brand, and Awara, the company's natural and organic mattress line.
"The dedication of our team has been critical to our success, and their tireless work to develop and market our products helped establish Resident as the largest direct-to-consumer mattress company in the country," said Ran Reske, Resident Co-Founder. "This capital infusion is a testament to our accomplishments, market positioning and momentum in a competitive and visible category."
"We've been following Resident's success for a while and are excited to join their journey," said Jonathan Kolodny of ION Crossover Partners. "We are confident that the exceptional team and the marketing platform they've built will allow the company to continue on its unprecedented growth trajectory."
As part of the deal, representatives of Ion Crossover Partners and Nexus Capital Management will join Resident's board.
Moelis & Company LLC acted as exclusive placement agent for Resident in connection with the transaction and a legal team led by Idan Netser was counsel to Resident.
At Resident (http://residenthome.com/), we are all about products that make people love coming home. We are relentless in our passion to provide consumers with better choices when it comes to everyday home products with unparalleled quality and value. That is why we have over 2 million people sleeping happily on our beds.
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