Casper Files for IPO; Frugi Acquires Two New Brands

Casper IPO

DTC’s Daily Digest brings you the latest news on the world’s fastest growing direct-to-consumer brands. In today’s edition: Casper files for IPO; Frugi acquires two new brands; and Starling expands offering for businesses. 

Casper files for IPO

Casper, an early player in the direct-to-consumer mattress market, has submitted its S-1 disclosures to the SEC, a key early step in the IPO process. 

Casper intends to list its shares on the NYSE under the symbol CSPR. Although the company hasn’t disclosed the precise number of shares it intends to float, the filing states that it intends to raise $100 million in the offering, a common placeholder value. 

Touting more than 1.4 million customers who have bought one or more of the company’s 27 sleep products, the company says that as of the end of Q3 2019, more than 16% of people who already own at least one Casper product since the company’s inception have made a repeat purchase.

Casper reported net revenue of USD$312.3m for the first nine months of 2019, up 20.3% from USD$259.7m for the same period a year prior. The company also reported losses of USD$67.4m for the first three quarters ended September 2019 – up about 5% from the same period in 2018. So while net loss increased, it wasn’t by much, especially considering its revenue growth during the same time frame.

Frugi acquires two new brands

Organic lifestyle brand Frugi has added two more green companies to its ranks, with the company confirming late last week it has acquired reusable nappy brand TotsBots and sustainable sanitary products brand Bloom & Nora.

TotsBots makes reusable fabric nappies made from recycled plastic, while its subsidiary brand Bloom & Nora uses bamboo, among other materials, to make reusable sanitary pads.  

Frugi said the move – financial details for which were not disclosed – would allow it to capitalise on shifting consumer behaviour towards more ethical clothing and sanitary products, and promised to work closely with the new brands to leverage “cross selling opportunities” and share manufacturing facilities.

The acquisitions are being funded by True, the consumer investment and innovation platform which took a majority stake in Frugi in 2018. The market for reusable nappies is growing fast, with TotsBots reporting 80% growth in its direct-to-consumer business over the last year as parents ditch disposable nappies amid concerns over single-use plastics.

Starling expands offering for businesses

Starling Bank is improving its bank accounts for businesses and sole traders with a range of new features, including unsecured loans of up to £250K, an increase in its overdraft limits from £10K to £150K, more competitive overdraft rates and a custom-built tax and financial management Toolkit.

As part of the changes, Starling is launching its first paid for features for businesses, providing access to a new Business Toolkit, costing £7 per month for sole traders and £12 per month for limited companies. 

Business owners will be able to opt for a paid-for Business Toolkit account that includes powerful new tools to track invoices, monitor cash-flow, keep track of how much tax and VAT they owe, submit VAT returns through HMRC Making Tax Digital-compliant software and more. Starling’s new unsecured term loan for business, offering from £5,000 to £250,000 over one to five years, will be available to limited companies that have been trading for at least 18 months on application direct to the bank.

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