Powering Triple-Digit Growth: How Bearaby Scaled to Eight-Figures with Assembled Brands

I. The Bearaby Story: Innovating Comfort, Driving Growth

Bearaby established itself as a pioneer in the wellness and home decor space by completely reinventing the weighted blanket. Unlike traditional weighted blankets filled with synthetic pellets, Bearaby’s patented ‘Napper’ blankets use sustainable materials, offering superior breathability, comfort, and natural calming effects—no artificial fillers needed.

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This unique product, backed by science, quickly built a fiercely loyal customer base and propelled the company into a period of explosive growth, with double-and triple-digit revenue growth over multiple years. However, this rapid success created a critical financial gap. To meet escalating demand, scale inventory, and prepare for new product launches, Bearaby needed a substantial and flexible source of working capital that conventional financing couldn't provide.

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II. The Challenge: Outgrowing MCA Financing, Not Yet Ready for a Bank

Before partnering with Assembled Brands, Bearaby found itself in a common position for fast-growing CPG brands: graduating out of merchant cash advances (MCAs) but not yet a fit for a commercial bank.

Early MCA financing supported initial growth, but high costs, frequent repayments, and constant cash drag conflicted with Bearaby’s long production cycles and seasonal demand. Even with strong fundamentals, MCA structures restricted reinvestment and made it difficult to scale inventory efficiently.

On the other end of the spectrum, bank financing wasn’t yet accessible. Traditional lenders favor stable cash cycles over the dynamic, inventory-driven rhythms of a modern DTC brand. The result: Bearaby found itself in the mid-market gap where many CPG brands get stuck.

The company needed a capital partner who understood their inventory cycle, could scale with demand, and offered a structure that wouldn’t require personal guarantees, rigid covenants, or loss of cash flow control.

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III. The Solution: Assembled Brands—A Founder-Friendly Partnership

Bearaby needed more than fast capital; they needed a strategic partner. Assembled Brands provided an asset-based line of credit tailored to Bearaby’s operations.

Rather than relying on cash-flow covenants, AB underwrote the value of Bearaby’s inventory and accounts receivable, creating a facility that grows as the business grows. This ensured uninterrupted working capital without renegotiating terms or sacrificing equity.

Key advantages included:

• No personal guarantees, no dilution, no lockbox
• One covenant max, keeping the structure transparent and founder-friendly
• High advance rates: up to 90% on eligible AR and up to 70% on eligible inventory
• Accordion-style line structure that automatically expands as inventory and receivables grow
• A streamlined process from initial conversation to capital in the bank
  
  

Together, this allowed Bearaby to maintain operational control, preserve ownership, and confidently plan for the next stage of expansion.

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IV. Tangible Impact: Enabling Scale and Operational Agility

• Increased Inventory Capacity
  The expanded line enabled Bearaby to scale inventory, prevent peak-season stockouts, and generate eight-figure revenue in year one.
• Accelerated Growth
  The brand’s sustained performance earned it national recognition as a 2022 Inc. 5000 honoree, validating both operational excellence and financial discipline.
• Faster Innovation
  Reliable working capital allowed Bearaby to launch new products ahead of projections and secure 10+ design patents.
• Operational Agility
  When supply chain delays arose, the ability to layer on PO financing enabled Bearaby to source materials without disrupting production or cash flow.
• True Partnership
  Bearaby’s leadership describes Assembled Brands as an extension of their team, providing hands-on support beyond the capital itself.

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"Working with Assembled Brands feels like having a partner who truly gets our business," says Eduardo Arce, COO of Bearaby. "Their capital gives us the flexibility to innovate, scale inventory, and execute growth plans without sacrificing control or our long-term vision."

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V. Conclusion: A Partnership for Sustainable Growth

Bearaby’s journey underscores the importance of the right financial partner during critical inflection points. With Assembled Brands, Bearaby gained flexible, founder-friendly capital that supports growth without diluting ownership or compromising operations.

With scalable capital, operational control, and a partnership rooted in understanding the CPG lifecycle, Bearaby is now positioned to continue its rapid expansion and deepen its leadership in the wellness market.

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