Online mattress retailer Eve Sleep wants to raise £35 million listing on the London stock market

LONDON — Fast-growing online mattress retailer Eve Sleep is seeking to raise £35 million in an initial public offering on the London Stock Exchange's AIM market, Business Insider understands.

The startup is exploring a public listing that could value the two-year-old business at up to £200 million, according to a document seen by BI.

Stockbroker Peel Hunt is working on the plans for the stock market flotation on AIM, the LSE's high-growth market.

Eve Sleep declined to comment when contacted by Business Insider.

Unlike traditional bed retailers that sell a range of mattresses, Eve sells just one mattress that it manufacturers itself and sells for £399. Eve's mattresses are made from foam and compressed to make them cheaper to ship.

Eve offers buyers the opportunity to sleep on its products for 100 days and still return it, another unusual quirk for the industry. It sells its vacuum-sealed beds across the UK, Germany, Switzerland, Belgium, France, and the US.

CEO and cofounder Jas Bagniewski told the Telegraph last month: "We’re planning to expand our product range and want to carry on building awareness of the brand across Europe."

Bagniewski said in the same interview that Eve has built its brand around "warmth and engagement" and is planning to branch out into areas such as pyjamas and candles, "things that are more traditionally associated with a lifestyle brand."

Eve was founded in 2014 and launch to the public in February 2015. The startup has raised over £17 million to date from a range of investors including renown City fund manager Neil Woodford, Channel 4, venture capital fund Octopus, and former Capita CEO Paul Pindar, who also chairs the company. Eve told the Financial Times last October that it had sold 25,000 mattresses to date and was shipping 700 a week.

Bagniewski was previously the UK head of German online fashion retailer Zalando and has worked at well-known German company builder Rocket Internet. He founded Eve with his cousin who worked in marketing at Channel 4.

Eve Sleep is one of a number of online-only mattress retailers that have recently entered the market, seeking to bring the kind of "disruption" that other areas of retailer have faced from digital-only competitors. Rivals to Eve include British-based Simba and US company Casper, backed by Leonardo Di Caprio.