Casper Sleep Inc. may be the next big IPO to make its move on Wall Street.
While the New York based online mattress retailer has seen a lot of success in its sales, their new focus is to make the push into the brick and mortar retail industry.
“Online is our bread and butter, that continues to grow really well for us, but we now have 23 retail stores, we're going to be opening up dozens more this year and we have great retail partners like folks like Target, Costco, and others,” Casper's CEO Philip Krim said on “Making Money with Charles Payne” Monday.
The company's success comes as Mattress Firm has filed for Chapter 11 bankruptcy and closed 700 of its stores.
Krim credits Casper's success in the brick and mortar retail sector to its quality products and value offers.
“For us, it was because the industry had taken innovation away from consumers, they had taken money out of the products, they had taken money out of the experience and they languished for decades...Casper came along and we offer customers a great product and a great experience at a great value.”
FOX Business' Charles Payne expressed that he has “a beef with the way companies have gone public recently.”
“I feel like they do too many rounds of fundraising. It's the same folks who get a bite at the apple...and they do 19 rounds of fundraising and then they tell the public, their customers, hey you want some? Then they buy the stock at $87 and two days later its $70.”
Casper Sleep Inc. is now valued at over $1 billion after raising $100 million in its fifth round of fundraising. While there are no immediate plans to take Casper Sleep public, Krim’s focus is on the bigger picture of creating a brand with a lasting impact.
“The way that we think about our business is that we're building a generational company. We want to build a brand and a business that's around for decades to come,” he said.
Krim adds that the IPO is just “one milestone in our company trajectory” and that great iconic brands like Casper will do “really well in the public markets, especially with a lot of growth ahead of them.”
The online mattress retailer is "expecting revenues of $556 million" for 2019, according to Casper Sleep's projections.