old

Leeds beds business Otty Sleep has agreed a debt funding package with FW Capital Debt Finance, part of the Northern Powerhouse Investment Fund.

 

The direct-to-the-consumer mattress company aims to use the growth capital — an unspecified six-figure sum — to expand its business in mainland Europe, with Germany, France, Poland and the Netherlands high on its list of target markets.


"We’ve seen huge growth over the past 12 months," said CEO and founder Michael Szlas in a press release announcing the finance, which is secured against Otty assets.


Inaugural accounts for the Yorkshire company didn't include a publicly-available income statement. However, balance sheet data was indicative of a business achieving seven-figure sales, and also show that the business was profitable.


The Northern Powerhouse Investment fund, managed across the North West and Cumbria and Tees Valley by FW Capital, typically offers business loans ranging from £100,000 to £750,000.


Mr Szlas added: "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 start-up 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."