D2C (direct-to-consumer) sleep and home solutions brand Wakefit has scooped up $40 million (Rs 320 crore) in its Series D round led by Investcorp with a participation of existing backers such as Sequoia Capital, Verlinvest, and SIG Venture Capital.
The Bengaluru-based company will utilize the fresh proceeds in category expansion and stretching its reach in Tier II and III cities across India. It also plans to strengthen its supply chain and hire more resources to its workforce, the company said in a press release.
According to Fintrackr, Wakefit has raised around $102 million to date and was last valued at around $375 million (Rs 2,800 crore) following its Series C round of $28 million in November 2021.
The six-year-old company manufactures and sells mattresses, pillows, accessories, and furniture. It also offers several home improvement products manufactured in its factories in Delhi, Bengaluru, and Jodhpur and sells the majority of products via its own online portal and retail stores and the remaining from other marketplaces.
To ramp up its play in this category, Wakefit had set up a plant in Hosur (Bengaluru) which has the ability to make 8,000 furniture pieces (sofas, dining tables, and beds) on a daily basis.
Wakefit is eyeing profitability by the end of the fiscal year ending March 2024 with a revenue of Rs 1,200 crore. Besides this, it’s planning to launch around 30 physical stores by March and another 70 by the end of 2023.
During FY22, the company managed to grow its scale to Rs 633 crore as opposed to Rs 409 crore in FY21. As per Fintrackr‘s analysis, its losses jumped 2.7X to Rs 102 crore in FY22 against Rs 37 crore in the preceding fiscal (FY21).
The company is also planning a public listing in the coming two years.
Another player in the space, The Sleep Company, raised around Rs 177 crore ($21.3 million) led by Premji Invest. Entrackr had exclusively reported about the development in November 2022. It also competes with Duroflex and SleepyCat. Norwest Venture Partners-backed Duroflex registered Rs 893 crore in revenue in FY22.