High-tech sleep brand Simba which produces the Simba Hybrid – the first dual spring and memory foam mattress of its kind, engineered for optimal sleep – today announced it has completed a £40m Series B investment round.
The latest investment, which comes as Simba moves to profitability in both the UK and France, takes the total raised by the sleep brand to £58.5m. The funding will be used to accelerate the brand’s global expansion – and brings a cash injection and continued support from Lombard Odier, Wharton Asset Management, Nigel Wray (formerly Domino’s Pizza; Saracens; Prestbury Investment Holdings; Franchise Brands Plc). The funding round was led by new backer, consumer focused VC, Atami Capital.
Launched by James Cox, Steve Reid, and mattress dynasty veterans the McClements family in February 2016, Simba is forecasting revenues of £41m for 2017, springing to £167m in 2018. Revenue is then expected to leap to £267m in 2019 as the e-tailer benefits from consumers’ insatiable appetite for premium sleep products.
The Startups100-listed disrupter sleep brand which is using cutting-edge materials and technology to reinvent the tired sleep sector is already operational in fourteen countries, has sold 100,000 mattresses since launch and experienced a sales increase of 247% in the past nine months.
This year, the brand has secured its hold on Europe with launches in France, Spain, Germany, Turkey and Romania, and has accelerated its footprint across Africa, Asia, Middle East and Australia. This latest investment will also be used to broaden new product development globally.
Europe’s fastest growing sleep brand has launched a host of innovative products in 2017 including the zero-gravity adjustable bed, a temperature regulating pillow and a duvet with an official Space Certified Technology seal-of-approval; a precision engineered bed base that assembles in three minutes and a deluxe mattress protector. It continues to pioneer in an archaic mattress market with its premium one-type-fits-all, next day delivery, bed in a box solution.
In the UK, Simba has cemented its leadership position with 30% month-on-month revenue growth. Half of the UK’s retail distribution network also now stocks the brand.
Amplified distribution places Simba in principal position in the £1.1bn sleep market. It has a nationwide partnership with John Lewis and continues its rapid market consolidation with Furniture Village, Ocado, Amazon, Argos and over 100 AIS stores stocking the brand, with 200 more stores expected in 2018.
Operating its global headquarters from Central London, personnel has grown exponentially in the past twelve months, with a team speaking 18 languages and employing 80 staff.
CEO and co-founder of Simba, James Cox, says: “This fourth-round investment ensures innovation remains at the core of our business ethos and aligns with our global momentum. By the end of 2017, we will have presence in over twenty global retail outlets and will have achieved 350% YoY revenue growth. We’re also on course for profitability in our core markets in early 2018 as well as exponential growth in the large £10bn US and £11bn Asian markets.”
Co-investor Jamie Brooke, Lombard Odier, says: “Simba’s progressive nature and entrepreneurial spirit has enabled the brand to expand successfully. Its innovation and pioneering technology approach has convinced us of its superiority in the sector whilst future proofing its category position.”
Investor Nigel Wray says: “In my long career I have honestly never seen sales growth like this. In my opinion, a great brand called Simba is being formed, with sales across the world to well-known retailers, online and offline!”
Simba’s recipe for success is based on a direct e-commerce strategy, supplemented by scale platforms such as Amazon, Souk and Takealot as well as leading territory retail partnerships.
Its market leader position is testament to its premium product innovation. Engineered for the perfect night’s sleep, the Simba Hybrid mattress’ cutting-edge innovative technology offers the comfort of four layers of propriety cooling foams with the support of 2500 patented conical pocket springs and was tested with the Sleep to Live Institute who have compiled 180 million individual data points taken from the sleep profiles of 10 million people.
Simba also has the stamp of approval from a series of heavyweight A-List investors including Spark Ventures and The Garage Soho, Tom Teichman (made.com, lastminute.com, notonthehighstreet.com), Sir John Hegarty (BBH, Camdem Brewery), Richard Reed, Adam Balon andJon Wright (Innocent Drinks), The Jatania Family (formerly cosmetics giant Lornamead – Vosene, Yardley), Richard Goldstein (whose family founded Superdrug), Julian Barnett of Cluny Hill Capital (formerly Polar Capital Holdings).