- Resident — a platform of digitally native brands in the mattress and home goods market — announced it has raised $130 million in funding
Resident — a platform of digitally native brands in the mattress and home goods market — announced it has raised $130 million in funding led by Ion Crossover Partners and Nexus Capital Management with participation from Baron Capital Group. This round of funding will be used for executing a growth plan, expand its brick-and-mortar retail footprint, and strengthen its supply chain and infrastructure to deliver a better customer experience.
This funding round follows a major year for Resident as the company registered tremendous sales growth of over 100% compared to 2019. And 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.
Since launching in late 2016, Resident has operated primarily with a remote workforce — making it a principle to hire the best talent regardless of location. And 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.
Throughout the company’s history, it enacted a multi-brand strategy that offered options to service the total available market vs. courting one market segment. And 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.
As part of the deal, representatives of Ion Crossover Partners and Nexus Capital Management will join Resident’s board.
KEY QUOTES:
“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. 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. 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.”
— Resident Co-Founder Eric Hutchinson
“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. This capital infusion is a testament to our accomplishments, market positioning and momentum in a competitive and visible category.”
— Resident Co-Founder Ran Reske
“We’ve been following Resident’s success for a while and are excited to join their journey. 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.”
— Jonathan Kolodny of ION Crossover Partners
