Sleep and home solutions startup Wakefit has raised Rs 200 crore ($28 million) in a financing round led by US-based SIG and participation from existing investors Sequoia Capital India and Verlinvest.
Wakefit will use the fresh funds for its omni-channel expansion plans, bolstering its supply chain, technological development and marketing. The company also has plans to foray into the home interiors market.
The Series C round valued the company at around $375 million.
Launched in 2015 as an online mattress retailer selling directly to customers, Wakefit has expanded its portfolio to sleep accessories like back pillows, neck support pillows, and comforters. Wakefit has manufacturing facilities in Delhi, Bengaluru and Jodhpur and it sells its goods via its own online portal and other marketplaces.
The company had raised Rs 185 crore or $25 million in its Series B round led by Verlinvest and Sequoia Capital India in December last year. Before that, it had raised Rs 65 crore in its first institutional round from Sequoia Capital in December 2018.
The D2C startup, which claims to be profitable after six months of inception, had earlier claimed that it recorded a revenue of Rs 410 crore in FY21. In FY20, the company’s profits rose by 56.6% to Rs 10.15 crore from Rs 6.65 crore in FY19 even though the company more than doubled its scale in FY20.
Around 95% of its revenues in FY20 were generated through the sale of goods including mattresses and pillows. Such sales grew by 2.6X to Rs 187.2 crore in FY20 from Rs 72.95 crore in FY19. The company is yet to file its annual financial statements for FY21.
For a manufacturing company, Wakefit has achieved remarkable financial performance throughout the last three years, it has managed to keep its efficiency and profitability ratios up in green while multiplying its scale of operations each year.