Sleep solution startup The Sleep Company has raised Rs 184 crore (approximately $22 million) in a Series C funding round led by existing investors Premji Invest and Fireside Ventures.
The startup aims to use the capital to diversify product offerings, including an expansion of ‘SmartGRID-based’ products in additional product categories, The Sleep Company said in a press release.
This comes merely 12 months after the company’s previous fundraise. Back in November 2022, it raised around Rs 177 crore ($21.3 million) in a Series B round led by Premji Invest.
The Sleep Company is also launching its 60th store in India, solidifying its offline presence in 20 cities across the country. It also has ambitious plans to open a total of 100 stores in the next six months, reinforcing its presence across tier I and tier II markets.
Founded by Priyanka and Harshil Salot, The Sleep Company offers mattresses, pillows, cushions, bedding, and office chairs. It sells its products across e-commerce platforms including Amazon and Flipkart, currently, the company has stores across Bengaluru, Hyderabad, and Mumbai.
Initially adopting a purely D2C model, The Sleep Company has since transitioned into an omnichannel model. In June 2022, the company marked its foray into offline retail with the launch of its first store in Bengaluru. Within a year of entering retail and omnichannel, it claims to have achieved a 50-50 revenue split between offline and online channels.
For the fiscal year ending in March 2023, The Sleep Company registered a 98% jump in its operating revenue to Rs 127 crore, according to startup data intelligence platform TheKredible. Losses of the company also surged more than three-fold to Rs 37 crore during the period.
According to Priyanka Salot, the firm has witnessed a 6x growth in two years, reaching an ARR of over Rs 350 crore as of September 2023, a significant leap from Rs 60 crore in November 2021.
The Sleep Company competes with Wakefit, SleepyCat, and others.
Peak XV Partners-backed Wakefit’s revenue from operations grew by 28.4% to Rs 813 crore in the last fiscal year (FY23) from Rs 633 crore in FY22. The firm’s losses jumped by 36.4% to Rs 146 crore in FY23.