LONDON — Online mattress startup SIMBA Sleep promised would-be investors sales growth of 460% in 2017, according to an investment deck seen by Business Insider.
SIMBA had net revenue of £9.1 million in 2016, according to the investor presentation created earlier this year, and expects the number to grow by 460% to £50.9 million in 2017.
Revenue is forecast to hit £178.6 million by 2019.
SIMBA, which launched in February 2016, manufactures hybrid memory foam mattresses, with the cheapest starting from £399 for a single.
Most sales come through its website but the company also has a partnership with upmarket department store John Lewis in the UK. Real Madrid football star Gareth Bale advertises the brand’s products and the startup says in its investment deck that its target customer are “professional urban 25-50-year-olds.”
SIMBA raised £9 million in February from investment management group Henderson (now part of Janus Henderson) and City of London stockbroker Numis Securities, among others.
The investment deck reveals that SIMBA sold 20,000 mattresses in its first 11-months, worth £13 million. By February, just two months later, that number had risen to 45,000, according to a press release announcing its successful fundraising.
To fuel its rapid growth, SIMBA promised rapid expansion to Europe, the US, and Asia in 2017 in its pitch to investors. The investment deck says:
“Simba is now focusing on Europe’s £7bn mattress market. Simba is already live online and selling in France, Germany, The Netherlands, Ireland and Sweden and by early Q1 2017 we aim to be live across Europe.
“In 2017 we will also launch into the £10bn North American market, as well as the region which has always been of upmost interest, Asia. The £11bn Asian mattress market lends itself perfectly to the space saving delivery logistics of the Simba Mattress.”
Sir John Hegarty, who founded advertising agency BBH and is SIMBA’s creative director, is quoted in the deck saying: “The fragmented, noisy and confused mattress market presents a great opportunity to create a global sleep brand, leveraging the groundbreaking next generation sleep technology the team have created.”
A spokesperson for the company confirmed that SIMBA is now active in 12 markets across Europe, as well as Israel, Canada, Dubai, Kuwait, Bahrain, and Oman.
As well as expanding to new markets, SIMBA is also plotting new products, including pillows and a bedside table. The company says in its investment deck: “Without divulging too much information the bedside table will be ‘connected’. With discreet USB ports in the design, solving the issue of extension leads and messy cables.”
The bedside table will sell for £300 giving SIMBA a 50% margin, according to the deck.
Asked about its progress on the growth plans set out in January, SIMBA cofounder James Cox told Business Insider over email:
“At SIMBA, our launch mission was to simplify sleep by designing a mattress that would satisfy 95% of the British population. One year later, we’ve met this goal and we continue to grow in-line with projections. 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.
“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.”
SIMBA is one of a number of mattress startups which have sprung up across the US and Europe over the last few year. All of them manufacture a limited number of mattresses, sell them online, and ship them in compressed boxes, thus making them more cost efficient to send.
The first and most successful of these online mattress startups was Casper in the US. The startup has reportedly been valued at over $US1 billion and counts the Hollywood stars such as Tobey Maguire and Leonardo DiCaprio among its investors. SIMBA says in its pitch to investors that it “aims to emulate the success of Casper.com.”
Aside from Casper, SIMBA also faces competition around the world from the likes of Tuft and Spring, Leesa, and Eve, another British startup that floated on the stock market in May with a valuation of £140 million.
SIMBA seeks to differentiate itself from rivals by pitching itself as more upmarket than rivals. “Simba is a premium range mattress, retailed at a third of the price of quality mattresses,” the company says in its investment deck.