Target had reportedly offered $1bn to buy Casper but will instead lead a large-sized round for the online mattress seller, which has so far raised $70m.

Big box retailer Target is set to lead a “large” funding round for high-grade mattress producer Casper in the upcoming weeks, Recode has reported, citing multiple sources.

Founded in 2013, Casper has developed a high-grade memory foam mattress as well as pillows and sheets, all of which it began selling through its online platform the following year.

The company recorded about $200m in sales in 2016, according to the sources, and Target agreed last week to begin selling the bedding…