UK mattress startup Simba Sleep raises £40m and is heading for profit in some markets
Simba Sleep, one of several startups hoping to disrupt the world of sleep, has bedded fresh cash to fuel global expansion as it nears profitability in some markets.
The £40m series B round of investment comes from previous backers Nigel Wray, a City heavywight and chairman of Saracens rugby club, Wharton Asset Management and Swiss bank Lombard Odier and was led by new backer Atami Capital.
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Simba is targeting revenue to grow by a sixth in the next two years – from £41m forecast for 2017 to £267m by the end of 2019 – and said it is moving towards profitability in the UK and France, two of its 35 markets.
The capital injection takes total funding of the two-year-old startup to £58.5m, with Citi banker Michel de Carvalho, advertising top dog Sir John Hegarty, serial startup investor Tom Teichman and Innocent Drinks founder Richard Reed among its investors.
“This fourth-round investment ensures innovation remains at the core of our business ethos and aligns with our global momentum," said chief executive and co-founder James Cox.
"By the end of 2017, we will have presence in over twenty global retail outlets and will have achieved 350 per cent year-on-year 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.”
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Wray, a backer of Domino's Pizza, fintech Nutmeg and wine company Chapel Down among others, said he had "honestly never seen sales growth like this".
Simba has heralded its innovative technology and many patents, however, it was censured by the UK advertising regulator for claiming the "most advanced" mattress in the world.
Simba faces competition from UK-listed Eve and US firms Leesa and Casper.