MONTREAL -- A U.S. company that relies exclusively on the Internet for sales of its bed-in-a-box mattress is looking to expand its Canadian reach and confound the country's largest mattress retailer.
Founded 14 months ago, Casper Sleep began to sell into Canada last November.
The startup hopes a new $55-million infusion of capital -- including from celebrities Leonardo DiCaprio, Tobey Maguire and Adam Levine -- will support its Canadian growth and international expansion, as well as research and development.
The stars are joining Nas, Ashton Kutcher and designer Steven Alan who, along with institutional investors, have infused US$70 million into the company since it was formed.
Casper plans to introduce pillows and sheets later this year and will use some capital to boost production to keep up with demand and avoid running out of stock.
Chief executive and co-founder Philip Krim wouldn't say how many Casper beds have been sold in Canada -- only that they represent a "meaningful" part of its $100-million-a-year business. The Canadian mattress market is estimated to be worth $1.4 billion a year while the global market is about US$50 billion.
"The sales in Canada have been stronger than we ever expected and continue to ramp up every month," he said Tuesday from New York City.
Casper ships its patented memory and latex foam mattresses in box that arrives two days after ordered online. All-in prices range between C$650 for a twin to C$1,150 for a king. They come with a 100-day trial period and 10-year warranty.
The company is banking on consumers being lured by lower prices and a willingness to order online instead of testing mattress comfort in a showroom.
Sleep Country Canada, the country's leading mattress retailer, told potential investors in regulatory filings for its planned public offering that online sales have gained limited traction because consumers primarily use the Internet for research but go to stores to feel the differences between mattress.
Sleep Country claims a 23 per cent national market share, ahead of Sears and The Brick, and says that in Quebec its Dormez Vous banner competes as well with Brault and Martineau and IKEA.
Krim said Casper didn't invent the bed-in-a-box concept but the combination of materials provide a very comfortable sleep.
The mattresses quickly inflate after removed from the box and the protective sleeve. "It almost takes in its first deep breath of air and you hear it expand to it full form within 60 seconds," he said in an interview.
Consumer Reports described Casper's first mattress product a "winner."
"Few mattresses in our ratings score equally well for both back and side support...(and) showed only minor changes after eight years of simulated use," the magazine said its published review. However, it added the mattress was softer than claimed and lacked grips, something that could make handling difficult.
