In a significant development, sleep solution startup The Sleep Company has secured Rs 184 crore (approximately $22 million) in a recent Series C funding round. The financing was led by existing investors Premji Invest and Fireside Ventures, showcasing strong support for the innovative startup.
The primary focus of this funding injection will be to diversify The Sleep Company’s product offerings, with a specific emphasis on expanding its range of ‘SmartGRID-based’ products across additional categories. The startup shared its strategic plans in a press release, underlining its commitment to enhancing sleep solutions for a broader customer base.
Remarkably, this Series C funding follows closely on the heels of The Sleep Company’s fundraising round just 12 months ago. In November 2022, the company raised approximately Rs 177 crore ($21.3 million) in a Series B round, with Premji Invest leading the investment.
As part of its growth strategy, The Sleep Company is set to inaugurate its 60th store in India, solidifying its offline presence in 20 cities nationwide. Ambitious plans are to open 100 stores within six months, further establishing its footprint across tier I and II markets.
Founded by Priyanka and Harshil Salot, The Sleep Company has positioned itself as a comprehensive sleep solution provider, offering various products, including mattresses, pillows, cushions, bedding, and office chairs. The company sells its products on major e-commerce platforms like Amazon and Flipkart, with physical stores in key cities such as Bengaluru, Hyderabad, and Mumbai.
Initially adopting a direct-to-consumer (D2C) model, The Sleep Company has successfully transitioned into an omnichannel approach. The company ventured into offline retail in June 2022, marking the opening of its first store in Bengaluru. Within a year of embracing the retail and omnichannel strategy, The Sleep Company claims to have achieved a balanced 50-50 revenue split between offline and online channels.
In a competitive landscape with players like Wakefit and SleepyCat, The Sleep Company distinguishes itself through strategic partnerships, innovative product offerings, and a rapidly expanding retail presence.
Wakefit, backed by Peak XV Partners, reported a robust 28.4% growth in revenue from operations, reaching Rs 813 crore in the last fiscal year (FY23) from Rs 633 crore in FY22. However, the firm also faced increased losses, jumping 36.4% to Rs 146 crore in FY23.
The Series C funding positions The Sleep Company for continued growth, enabling it to stay at the forefront of the evolving sleep solutions market and fulfil its vision of providing quality products to a broader audience. As the company pushes forward with its expansion plans and product diversification, it remains a key player in the dynamic and competitive sleep solutions industry.
