D2C mattress brand The Sleep Company has raised INR 184 Cr ($22.1 Mn) in its Series C funding round from existing investors Premji Invest and Fireside Ventures.
The startup will use the capital for brand building, omnichannel expansion, and product innovation.
It is pertinent to note that The Sleep Company raised INR 177 Cr ($21 Mn) last year in its Series B funding round led by Premji Invest. It also saw participation from Alteria Capital and existing investor Fireside Venture.
“Our valuation has more than doubled since the last round, and since our launch in October 2019, we’ve achieved remarkable 3X year-on-year growth,” The Sleep Company cofounder Priyanka Salot told Inc42.
The Mumbai-based brand, which competes with the likes of Wakefit, Sleepyhead, Sunday, and SleepyCat in the highly competitive sleep solutions and mattress market in the country, forayed into offline retail in August 2022, with the opening of exclusive stores in Bengaluru and Hyderabad.
The Sleep Company’s unique selling proposition lies in the patented SmartGRID mattress technology. Since its launch, the company has diversified into segments like work and gaming chairs. As a result of its product diversification, the company’s non-mattress business accounts for 35% of its revenue.
Currently, the startup has 60 stores across 22 cities in India. By March 2024, it plans to take this number to 100 stores.
“We are technically opening one store every four days in the country. We want to keep the same momentum, and the same pace going forward. Over the next one year and four months, we will expect 200 outlets spanning 35-40 cities in India. Hence, a substantial chunk of fresh capital will be used there,” cofounder Harshil Salot said.
Currently, the startup’s top offline markets are Bengaluru, Hyderabad, Chennai, Mumbai, and Delhi NCR.
Offline channels account for 50% of the startup’s revenue. While 30% revenue comes from direct-to-consumer (D2C) sales, the remaining 20% is generated through various marketplaces.
The D2C brand entered the Japan and the UK markets last year. The founders claimed that the international markets currently account for 7-10% of its total revenue. They have plans to increase this number to 20% before pursuing aggressive expansion into new markets.
The Sleep Company has touched an ARR of over INR 350 Cr and aims to end the ongoing financial year with an ARR of INR 500 Cr. It is also looking at becoming EBIDTA profitable by next year.
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