Eve Sleep

Eve Sleep Plc , is a UK-based e-commerce business that sells mattresses online.[3] It was founded in 2014 and launched to the public in December 2014.[4][5][6][7]

Eve Sleep Plc
TypePublic
AIM: EVE
IndustryMattress industry
Founded9 October 2014 (2014-10-09)
Founder
  • Jas Bagniewski
  • James Fryer
  • Kuba Wieczorek
  • Felix Lobkowicz
  • Abid Ismail
Headquarters
London, England
,
UK
Area served
Worldwide
Key people
Products
Revenue£23.9 million (2019)
£(12.5) million (2019)
£(12.1) million (2019)
Number of employees
61
Websiteevesleep.co.uk
Footnotes / references
[1][2]

Eve Sleep manufactures 4 different mattresses. The current Original has a three-layer design incorporating memory foam.[4] Eve sells online and reduces its shipping costs by rolling the mattress into a box. It can also be bought in High Street stores.

History

Origin

In the 2010s, mattress company startups such as Eve began to emerge with a new business model to meet consumer and market demands.[8][9][10]

These new companies had a limited selection of products[10] made from a few key components[9] at a fraction of the high street costs.[11] They also aimed to simplify the decision process for customers, offering generous trial periods, quick delivery and social media marketing.[9]

Jas Bagniewski was already in the mattress industry, along with James Fryer. They sold over $2 million worth of mattresses in one day on a Groupon flash sale in 2011.The company went on to sell 75,000 mattresses online in 18 countries.[12] The idea for Eve grew from their experience and through years of product testing, customer feedback and reviews.[12]

Eve Sleep was founded in October 2014[13][14][11] in London by:

  • Jas Bagniewski (ex-senior management of Groupon UK and ex-head of Zalando UK)
  • James Fryer (previously of Zen Bedrooms)
  • Kuba Wieczorek (ex director at Channel 4 Creative and head of sports marketing at Channel 4)
  • Joe Moore (formerly at Deloitte)
  • Felix Lobkowicz (ex-VP Rocket Internet and ex-head of Zalando UK)
  • Abid Ismail (ex-CEO of Axelos, part of Capita Plc, and ex-assistant director at Ernst and Young M&A).[14][13]

The company was officially launched in December 2014.

Funding rounds

In 2015, the company closed a seed-round of funding worth £600,000.[4] Investors included FJ Labs (Viagogo and Zesty), DN Capital (Shazam) and Octopus Ventures.[4][5][15] In 2018, the company looked to raise a further 15 million pounds.[16]

Octopus Ventures and DN Capital invested for a second time in a Series A round to the value of £2.5 million in October 2015.[11][17] And in July 2016, Eve Sleep secured £6.9m in Series B funding.[18] This round included funding from Channel 4, the British public-service television broadcaster, via its Commercial Growth Fund.[19][20][17] Channel 4 offers companies not currently advertising on television in the UK, the opportunity to launch a TV ad campaign on Channel 4, by exchanging equity stakes or striking revenue share arrangements.[19][20]

Initial growth

The company sold more than 11,000 mattresses in its first year with a turnover of more than £3.5 million, averaging monthly growth of 25%.[5]

Management change

By 2017, the revenue had increased to £27 million, but the operating losses also increased to £19 million in the same period, with over half the revenue spent on marketing. The founding CEO, Jas Bagniewski, was asked to step down in July 2018 due to the poor financial performance,[21] and was replaced in September 2018 by James Sturrock, the former CEO of Moonpig. At the time Bagniewski was asked to stand down, the company share price was 67p per share. In the first 6 months under new management, the share price dropped to 10p per share. In September 2018, the new CEO said that the company needed an injection of capital, and proposed a share placing to achieve it.[21]

Product
The Eve Sleep mattress

Eve Sleep sells four mattresses, Light, Hybrid, Original and Premium.

Bed names and size specifications vary in different countries. The mattress exists in all standard sizes in UK (single, double, king, super king...) and in US (single, twin, twin XL, full, king and California king), and fits all IKEA frames.[12][22] The company also manufactures custom-sized mattresses on demand.

The Original and the Light mattresses features a knitted two way stretch fabric cover in white with a distinctive yellow side panel.

The mattress is vacuum packed and folded into a box, and can be easily delivered and moved up staircases, unlike traditional mattresses. When unpacked, the mattress recovers its original shape and is ready to sleep on within hours. This method also cuts the delivery cost.

Eve Sleep's products are designed and made on demand in the UK and United States.

The company used to claim to make "the world's most comfortable mattress" and "the perfect mattress" at the third of the price of an equivalent high street mattress.[12][11]

Business model
Eve Sleep mattress in a child's bedroom

Eve's business model features direct online sales, strong customer service and savvy social media marketing. Its online platform allows the company to offer its mattresses at affordable prices.

The firm is operating in the UK, the US, Germany, France, Belgium, Luxembourg, Austria, Switzerland, and plans to expand further.[18]

Eve Sleep's goal is to become a global household brand.

Marketing

In December 2015, the mattress company launched a long-form copy advertising campaign across the London Underground showing its distinctive yellow mattress border.[17] Channel 4's investment saw Eve Sleep launch a television advert across its channels.[17]

In June 2016, Eve Sleep also launched its "Nap Station".[23] Located at the Old Truman Brewery, in East London,[24] the pop-up nap station was a co-working space come nap station equipped with beds. The "Nap Station" allowed people to experience the brand, try Eve mattress and encouraged them to enjoy the benefits of a power nap.[25] Visitors could benefit from free Wi-Fi and charging points, and artisan coffee.[26][27]

References
  1. "Annual Report 2019" (PDF). Retrieved 10 July 2020.
  2. "Companies House Profile". Retrieved 10 July 2020.
  3. "Eve Sleep". Cbinsights.com.
  4. Burn-Callander, Rebecca (18 February 2015). "The mattress deal that lets Eve customers sleep easier". The Telegraph.
  5. "London online mattresses retailer Eve raises £2.5 million". Evening Standard. 18 November 2015.
  6. "Eve Sleep Limited". Company Database. 18 February 2015.
  7. "Interview with Jas Bagniewski, founder and CEO of Eve Mattress". Mattress Clarity. 19 November 2015. Retrieved 1 November 2018.
  8. "Mattress wars heat up: Leesa raises $9 million". Fortune. July 2010.
  9. "This Mattress Startup Wants To Change The Way You Think About Sleep". HuffPost. November 2015.
  10. "The new mattresses professionals". The Wall Street Journal. September 2015.
  11. "Eve Mattress secures £330,000 seed round". Startups.co.uk. 31 March 2015.
  12. "Eve Sleep: Jas Bagniewski". Startups magazine. January 2016.
  13. "Eve Sleep". Startups. May 2016.
  14. "12 days of start-ups: eve". Startups.co.uk. December 2015.
  15. "The mattress deal that lets Eve customers sleep easier". Yahoo. 18 February 2015.
  16. Article in The Retail Gazette
  17. "Eve Mattress secures £600,000 seed round led by Octopus Investments". Startups.co.uk. 11 May 2015.
  18. "Channel 4 backs premium mattress startup in 'transformational' Series B round". Bdaily.co.uk. 16 July 2016.
  19. "Mattress Retailer Eve Sleep Secures £6.9M in Series B Funding". Finsmes.com. July 2016.
  20. "Investors look to Eve Sleep". Bqlive.co.uk. 16 July 2016.
  21. "Why Eve Sleep is proving a bit of a nightmare for investors". 19 November 2018. Retrieved 7 December 2018.
  22. Prevett, Hannah (2 December 2015). "Proof that dreams can come true in business". The Times.
  23. "Get some shut-eye at a pop-up nap station in Brick Lane". Time Out. June 2016.
  24. "London is getting a 'nap station' so workers can get some goddamn sleep". The Independent. June 2016.
  25. "London is getting a cosy pop-up where exhausted people can take a nap". Metro. June 2016.
  26. "London has a nap station: Meet the men from Eve Sleep who are trying to get you into bed". Yahoo. July 2016.
  27. "This Pop-Up Nap Station Allows Londoners To Get Some Shut Eye". HuffPost. June 2016.
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