This $200 Million Mattress Maker Is Waking Up the Sleep Industry

Casper’s founders reflect on their company’s fast growth–and ponder what’s to come. This story was originally published on

casper co-founders

From left: Casper co-founders Gabe Flateman, Neil Parikh, and Luke Sherwin. CREDIT: Joao Canziani

Editor’s Note: Inc. Magazine announced its pick for Company of the Year on Tuesday, November 29. It’s Riot Games! ​​ Here, we spotlight Casper, one of the contenders for the title in 2016.​

If you listen to podcasts, spend any time whatsoever on YouTube, or ride the New York City subway, you’ve probably heard or seen Casper’s whimsical sleep pun-filled ads. “Join the ZZZZZ list,” one ad suggests. Another, which shows a woman entering her bedroom with a briefcase full of piglets, reads: “The perfect mattress for bringing home the bacon.”

The two-year-old New York City-based mattress maker gained notoriety after videos of customers “unboxing” their mattresses began proliferating online. The mattresses, which are compressed into a box the size of a small doghouse, unfold accordion-like in an instant. Naturally, with the internet fame, its sales have skyrocketed. Last year, in its first full year of business, Casper reported $100 million in sales. Philip Krim, the company’s co-founder and CEO, says it’s on track to double that figure by the end of 2016.

Neil Parikh, another co-founder, takes that forecast even further, giving Casper a trajectory rivaling the sales of giant public companies like Adidas and McDonald’s. Just how big might Casper get? “Twenty to 30 billion dollars,” Parikh deadpans.

They’ll need to sell a lot more product to get there. According to PrivCo, a New York-based private company research firm, the top eight mattress companies in the world–all of which have brick-and-mortar stores–dominate at least 38 percent of the industry’s retail market share. They’re led by Mattress Firm, based in Houston, which made $2.5 billion in 2015 revenue. The company was acquired in August by South Africa’s Steinhoff International, a holding company and discount retailer, for $3.8 billion.

“The advantage of Casper is that they’re going against a very old-school industry that just doesn’t care,” says PrivCo investment analyst Kashif Sheikh. “It’s taking advantage of a unique situation right now, but the incumbents will catch up at some point. These guys are seasoned.”



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