SAN FRANCISCO — Resident, which sells direct-to-consumer brands in the mattress and home goods market, has received an investment of $130 million led by Ion Crossover Partners and Nexus Capital Management with participation from Baron Capital Group. The funds will be used by the company to execute Resident’s growth plan, expand its brick-and-mortar retail footprint and strengthen its supply chain and infrastructure to deliver a better customer experience.
The funding round follows a banner year for Resident, which reports sales growth of over 100% compared to 2019. 2020 was also a year of exponential growth in Resident’s retail presence, with its products available on the floors of many of the largest bedding retailers in the US.
Resident’s brands include Nectar, the company’s gel-memory foam mattress brand, as well as DreamCloud, Resident’s luxury hybrid mattress brand, and Awara, the company’s natural and organic mattress line.
“Over the past four years, we drove Resident to profitability through a combination of data-driven performance marketing coupled with product and operational excellence. Our key to success is our ability to find in-market customers and offer them exceptional products at great value,” said Eric Hutchinson, Resident Co-Founder. “The quality and stature of our newest investors shows a true vote of confidence in our business model and continued success.”
“COVID has generated tremendous momentum for ecommerce companies worldwide,” added Hutchinson, “and our focus on data-driven performance marketing allowed us to react to market trends faster than others. The increased demand also forced us to drive efficiencies across every area of the business, which will create benefits for years to come.”