Dive Brief:
-
As more digitally native brands eye next-stage growth opportunities, DTC bedding brand Brooklinen on Wednesday announced it received an investment from private equity firm Freeman Spogli & Co.
-
The brand said the partnership will help it support its DTC e-commerce operations and accelerate its growing retail and wholesale businesses, according to a company press release.
-
The companies did not disclose specific terms of the deal.
Dive Insight:
Brooklinen launched in 2014 with a stated goal of creating quality sheets that "didn't cost an arm and a leg."
Since its inception, the direct-to-consumer brand has expanded its merchandise assortment to include pillows, towels, candles, robes and loungewear; entered physical retail; and created an online marketplace, dubbed "Spaces by Brooklinen," offering consumers a curated selection of products from other brands, like Floyd, The Sill and Taschen.
"This year we've doubled down on our commitment to provide comfort to our customers, and this investment will help us continue to reach them both online and in-person through our expanding retail fleet," Rich Fulop, co-founder and CEO of Brooklinen, said in a statement.
Ben Geiger, a partner with Freeman Spogli, said the brand's "unique value proposition" has led to strong brand loyalty, growth, and notably, profitability.
The limitations of selling goods exclusively online have become ever apparent in recent years as a result of high marketing costs associated with acquiring customers. Up until recently, when the unique circumstances brought on by the pandemic caused a spike in demand in the home and pet categories, both Wayfair and Chewy had failed to reach profitability. And mattress brand Casper, another DTC brand that has gone public in recent years, has yet to turn a positive net income.
As of last September, Brooklinen was valued at just under $50 million, according to data from PitchBook. Freeman Spogli, in its press release Wednesday, said existing investor Summit Partners, which invested in Brooklinen in early 2020, will retain its equity stake in the company.
