Case study - Otty

About Otty Sleep

Otty Sleep is an online mattress retailer specialising in the bed-in-a-box concept, offering a curated collection of mattresses and accessories. Founded in 2016, Otty Sleep has positioned itself as a unique player in the mattress industry, focusing on quality products and customer satisfaction.

Industry
Online Mattress Retailer

Funds for
Managing Inventory

Business Model
Direct-to-Consumer

“Simple, reliable, and supportive. When we needed you guys, you were there.”

Michal Szlas, Founder of Otty Sleep

Challenge

Like many businesses, Otty Sleep encountered challenges, particularly during the COVID-19 pandemic. The sudden shift in consumer behaviour led to a significant drop in sales, requiring the company to reassess its financial strategy. With a lean team and a commitment to profitability, Michal Szlas, Founder of Otty Sleep, sought solutions to navigate uncertain times while maintaining its commitment to quality and service.

Solution

In response to changing market conditions, they shifted their focus from rapid revenue growth to building a sustainable and profitable business model. This involved reevaluating its approach to debt financing and investment decisions. Understanding the importance of cash flow management, Otty Sleep sought flexible funding options that aligned with its long-term goals.

Getting funded

Outfund provided Otty Sleep with a flexible financing solution tailored to its needs. “When we needed you guys, you were there,” Michal emphasises. With a simple and streamlined application process, Otty Sleep accessed the capital needed to manage inventory and marketing expenses during challenging periods. The financing allowed Otty Sleep to maintain strong supplier relationships and continue delivering high-quality products to its customers.

Results

The partnership between Otty Sleep and Outfund enabled the company to navigate through financial uncertainties while preserving its commitment to profitability. "Access to unsecured and easy capital is crucial in situations like this," Michal affirms. By leveraging flexible financing, Otty Sleep effectively managed cash flow, supported inventory requirements, and sustained marketing efforts. As a result, Otty Sleep emerged from challenging periods stronger and more resilient, positioning itself for continued growth and success in the competitive mattress industry.