Resident, a platform of digitally native brands in the mattress and home goods market, today announced that it has received an investment of £95.7m 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 achieved profitability in 2020, with YoY revenue growth of +354%. Resident launched in the UK in 2018 with its D2C 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 carbon-neutral mattresses endorsed by the Good Housekeeping Institute.
“We drove Resident to profitability through a combination of data-driven performance marketing coupled with product and operational excellence," says Eric Hutchinson, Resident's co-founder. "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 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, embracing an ethos of hiring the best talent regardless of location. That approach made it easy for the company to scale its team with domain experts, and had the unexpected benefit of keeping daily operations running 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, as opposed to courting one market segment. This led to the growth of Nectar, the company’s premier 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 D2C mattress company in the country,” says Resident co-founder Ran Reske. “This capital infusion is a testament to our accomplishments, market positioning and momentum in a competitive and visible category.”