Big Boxes are Joining The Party

Target Drops $75M in Casper’s latest Funding Round

Target is jumping head-first into a $75M investment that is no-doubt an effort to keep it’s revenue closely tied to the millennial consumer.

What company is this? Casper Sleep. The price tag….$75M of the $100M+ round currently being sealed as we speak, according to sources familiar with the deal.

According to ReCode, existing Casper investors are doubling down on their investment. This includes funds such as Lerer Hippeau Ventures, IVP and NEA.

The investment is a direct result of Target and Casper failing to agree on an acquisition agreement of $1B.

“Target invested in Casper because we believe in their team, their ideas and their vision for reimagining sleep,” a Target spokesman said in a statement, but declined to confirm the amount invested.

The statement continued: “The strategic partnership offers Casper access to an established retail brand and gives Target an opportunity to work with a future-focused digital brand that is exploring an area that is meaningful for our guests — sleep and wellness. We’re looking forward to exploring the future together.”

An investment from Target could surface to be of significant value. With Target’s stable e-commerce system and supply chain know-how, having an innovative big-box retailer in the room isn’t a bad idea. As far as what target stands to gain, well, this is very similar to the GM investment in Lyft. Bulky enterprises are starting to learn that hedging the impact of disruption can deem itself valuable from a brand perspective and on the balance sheet. Shareholders love growth, and direct-to-consumer brand Casper has solidified it’s market share within the mattress sales market.

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