Eve Sleep launches first retail IPO of the year

Helen Cahill
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Eve faces stiff competition in the hipster mattress market (Source: Eve Sleep)

Mattress seller Eve Sleep has launched the first retail IPO of the year, raising £35m with a float on AIM.

The fundraising values the business at £140m.

Eve said the funds will be used to build on its current marketing strategy, and will provide working capital for the business. Open trading of the company's shares will start on Thursday.

Read more: Hipster mattress maker Eve announces intention to float

For the year ending 31 December, Eve's revenues grew by more than 300 per cent from £2.6m to £12m. The firm said that trading in the first three months of 2017 was similar to the prior quarter, and that its growth was due to its increasing UK market share, and its expansion overseas.

Eve also said it had achieved its growth due to its outsourcing strategy. The firm itself focuses on the design and marketing of its mattresses, but it siphons off the manufacturing and delivery of the mattresses to other parties.

Currently, Eve has 0.1 per cent of the European market for sleep products, but it is aiming to become the top mattress retailer in Europe.

Simba Sleep is also vying to become Europe's leading mattress seller

However, Eve faces stiff competition. Other so-called "disrupters" in the mattress market include Simba Sleep, and Casper, which is backed by Leonardo DiCaprio.

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Jas Bagniewski, Eve's chief executive, said: "The funds raised will accelerate our growth strategy including through deepening penetration within our ten existing markets, as well as expanding our product range.

"Eve has a clear growth strategy, an experienced management team and a scalable operational model to continue building on its momentum. We thank our existing investors for their continued support and welcome our new shareholders."

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