Digitally-native mattress brand Resident has received an investment of £95.7 million and plans to boost its UK operation amid global growth.
The Silicon Valley firm’s UK operation – which includes direct to consumer mattress brands Nectar and DreamCloud – launched in 2018 and achieved profitability in 2020, benefitting from 354% growth YoY.
It has a focus on sustainability, achieved through manufacturing its products in the UK. Nectar and DreamCloud recently became the first certified ‘carbon neutral’ mattresses endorsed by the Good Housekeeping Institute.
The Series B round was led by Ion Crossover Partners and Nexus Capital Management with participation from Baron Capital Group.
“We drove Resident to profitability through a combination of data-driven performance marketing coupled with product and operational excellence,” said Eric Hutchinson, Resident co-founder.
“COVID has generated tremendous momentum for eCommerce companies worldwide 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. It says the approach allowed it to scale its team with domain experts and had the unexpected benefit of keeping daily operations business-as-usual in spite of the pandemic.
“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.