Leeds mattress firm to expand in Europe with six-figure Northern Powerhouse backing
Online mattress retailer OTTY Sleep is expanding into Europe with the help of the Northern Powerhouse Investment Fund (NPIF).
The Leeds-based ecommerce business will use the six-figure boost, provided by FW Capital – Debt Finance, to increase its product offering and drive its presence in the continental markets.
OTTY Sleep, a provider of ‘bed-in-a-box’ mattresses, was founded in 2016 by its CEO Michal Szlas.
Michal said: “At OTTY, we’ve seen a huge growth over the past 12 months, which has resulted in a record year-on-year turnover.
“We’ve also been able to hire a skilled team to manage this expansion, and are well underway with extending our range of products.”
He continued: “However, the European expansion, introduction of new products and an increase in the B2B trade all have an effect on our cash flow – an aspect which is an essential part of any business, especially a young startup that has not had the sufficient time to raise the total capital to help the company grow.
“We are excited to work with FW Capital, as we know it’s a move which will ultimately allow OTTY to continue its natural growth.”
FW Capital deputy fund manager Nicky Atkinson commented: “Growth capital is critical to all businesses and especially fast growing companies like OTTY.
“OTTY’s growth trajectory is impressive and we are confident this will act as the stepping stone for its expansion into Europe.”
Corporate finance firm Princelet Partners advised OTTY on the investment.
Alistair Thomas, director at Princelet Partners, said: “We are delighted to have worked with the team at OTTY and FW Capital are a great fit as a finance partner for the company.
“OTTY continues to make impressive progress and we look forward to supporting Michal and his team on their future growth plans.”
Mark Wilcockson, senior relationship manager at British Business Bank, which runs the NPIF from its Sheffield HQ, said of the deal: “The North is home to a number of high-potential businesses that, with the right backing, can achieve their growth objectives.
“OTTY is a prime example of this, and we are pleased that this NPIF investment will support the team in broadening the product offering and strengthening its presence in the market.”
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