Casper, the Mattress startup, stated in a press release on Wednesday, that it would bring down its Initial Public Offering (IPO) range to $12–$13 per share from $17–$19.
Based on the previous price range, the valuation now is $520 million from $760 million. Casper is planning to sell 9.6 million shares, including guarantor options.
Casper has 1.4 million customers served in seven different countries. It generates revenue for $3, with every $1 spent on marketing with each of its customers.
On talking about the step taken on its monetary policy, Casper’s company representative said in its filing,
We believe sleep is rapidly becoming the third pillar of wellness and is poised to undergo the same massive transformation that fitness and nutrition have as they became major consumer categories.
The company also unveiled that it had a loss of $92.1 million over the revenue of $357.9 million in the year 2018 and the loss of $73.4 million over $250.9 million in 2017.
Earlier this month, Casper publicized to take the company to the New York Stock Exchange, under the stock symbol of Customer Service Project Review (CSPR). This designation gives Casper and other such companies the right to reduce their reporting requirements.
The company’s main business is selling mattresses online.
Without the involvement of the intermediaries in the process of selling, the company policy is to deliver products directly from the manufacturer to consumers.
From 2019, the company is witnessing a market growth rate of 6.3% that is expected to remain consistent until 2024.
Casper was established in the year 2014 and now has more than 1.4 million customers with 60 stores. Its popularly known as Warby Parker of the mattresses company.