Mattress website Simba sleep has been forced to slash its valuation for the second time as it looks to raise more cash in an “increasingly challenging” environment.
The company has faced issues after shares fell over 90 per cent in listed rival Eve Sleep last year.
Now the company has reduced its valuation to just £20m as it aims to raise £10m, Sky News reported.
It represents a less than a sixth of the company’s stated value in a November fundraise and is a fraction of where it hopes to be in a few years.
New chairman Allan Leighton and shareholder Nigel Wray, along with other board members, have already pledged £5m, the company said.
It will now look for another £5m from other shareholders. It said the fundraise will help it return to profitability and give it a buffer.
Chief executive Steve Reid told Sky News that the funding scene has become increasingly challenging because of “macroeconomic and political uncertainty” and the “decline in the market capitalisation of other e-commerce” businesses.