Online mattress retailer Casper Sleep files for U.S. IPO

Casper is one of a string of online mattress retailers that have squeezed the industry's old players

Casper Sleep Inc, the online mattress retailer whose investors include actor Leonardo DiCaprio and rapper 50 Cent, on Friday filed for an initial public offering with U.S. regulators.

Launched in 2014, Casper is one of a string of online mattress retailers, such as Purple, Nectar Sleep and Tuft & Needle, that have squeezed the industry’s old players.

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Casper’s IPO comes as the company has been expanding into brick-and-mortar retail, transitioning from temporary to permanent stores.

The mattress retailer is betting that its popularity with urban millennials will ensure it does not share the same fate as Mattress Firm Inc, the largest U.S. brick-and-mortar mattress retailer that filed for bankruptcy protection in 2018.

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The New York based company’s investors include retailer Target Corp and investment firms Lerer Hippeau Ventures, IVP and NEA.

The company intends to list its shares on the New York Stock Exchange under the symbol “CSPR”.

Morgan Stanley, Goldman Sachs and Jefferies are the lead underwriters on the IPO.