LONDON, Jan. 7, 2021
- New financing will allow the mattress and home goods group to further strengthen performance marketing capabilities and aid expansion plans
- UK operation – which includes direct to consumer mattress brands Nectar and DreamCloud – achieved profitability in the UK in 2020, benefitting from 354% growth YoY
- Company committed to delivering a premium customer experience, including sustainability focus through UK manufacturing operations
LONDON, Jan. 7, 2021 /PRNewswire/ -- Resident, a platform of digitally native brands in the mattress and home goods market, today announced it has received an investment of £95.7 million to fuel global growth. Led by Ion Crossover Partners and Nexus Capital Management with participation from Baron Capital Group, the funds will be used to execute Resident's growth plan, expand its brick-and-mortar retail footprint in the US and strengthen its supply chain and infrastructure to deliver a better customer experience.
The funding round follows a year of strong performance, including significant success for its UK operation which has achieved profitability in 2020, with YoY revenue growth of 354%. Resident launched in the UK in 2018 with its direct-to-consumer mattress Nectar and quickly introduced the luxury DreamCloud brand.
The UK growth is driven in part by a range of customer-focused initiatives across the Nectar and DreamCloud brands – 365-night trial, solely UK manufacturing operations – plus continued steps in environmental sustainability. Both are climate neutral and Nectar and DreamCloud recently became the first ever carbon neutral mattresses endorsed by Good Housekeeping Institute.
"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 UK 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. Awara, the company's natural and organic mattress line, is also available in the US.
"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.