LONDON — Online mattress startup SIMBA Sleep has raised at least £2 million to fuel growth since February, accounts show.
SIMBA raised £9 million in February but accounts filed with Companies House show the startup, which is advertised by Real Madrid footballer Gareth Bale, has already gone back to investors for more cash.
Directors and investors gave the business a further £2 million in May 2017 in the form of convertible loans and interest-free, unsecured loans, accounts show.
The accounts also suggest SIMBA has raised £2 million in equity funding since February, although the timing of this investment is not clearly worded.
If it did happen since February, it would mean SIMBA has raised a further £4 million in the last four months. That would take the total raised to over £20 million.
SIMBA, which manufactures mattresses and sells them online, says in its accounts: “In order to maintain the Company’s continuing pace of growth, the Company is continuously raising finance.”
Cofounder James Cox told Business Insider that SIMBA remains “open to new funders and investment,” despite the recent raises.
The company’s existing backers include investment giant Henderson, London stockbroker Numis Securities, the husband of the sole heir to the Heineken family fortune, and advertising guru Sir John Hegarty, who is also SIMBA’s creative director.
The large sums are being used to fuel ambitious growth plans for the startup. Business Insider reported earlier this week that SIMBA, which launched last year, promised investors revenue growth of 460% this year, fuelled by expansion to Europe, the US, and Asia, and the launch of new products.
Cofounder James Cox says in an emailed statement:
“SIMBA continues to build and grow as a global sleep technology brand. By delivering an excellent product through a hybrid of sales channels — both retail and direct to consumer — we will not only be profitable in the UK by end of 2017, but continue to grow at speed across the world.
“As we expand we are open to new funders and investment. SIMBA now operates in 15 countries and is market leader by 50% across Europe. By September this year, we will have a presence in over 1750 retail outlets globally and plan to roll out to over 30 countries in the next year as we focus on our longer-term strategy to continue to innovate the sleep category.”
The loss-making business’ accounts also show that February’s fundraising was not an equity investment but a convertible loan note, with 6% interest. This means SIMBA must pay interest to its investors and could ultimately have to pay back the £9 million. However, the debt can be converted into shares in the business at a later date.
SIMBA says in its accounts it is “looking to raise additional funds to further speed its expansion.” The company adds: “Whilst these funds have not been received at the date of signing, the directors are satisfied this funding is to accelerate growth rather than to support the going concern assumption.
“Based on forecasts and budgets prepared by the directors, they are confident that the company could manage its discretionary spending in order to continue to trade for the foreseeable future in the unlikely event that future fund raising was not immediately forthcoming.”
SIMBA’s accounts are abbreviated and, as a result, don’t give much insight into its performance last year. A leaked investor deck prepared in January seen by Business Insider suggests the startup lost £6.4 million on net revenue of £9.1 million last year.
Eve Sleep, a rival online mattress business, said on Wednesday that revenue grew by 126% to £11.5 million in the first half of the year.