The Sleep Company, a prominent player in the comfort-tech industry, has successfully raised ₹184 crore in a Series C funding round, with continued support from existing investors Premji Invest and Fireside Ventures. This strategic funding infusion aims to propel the company’s offline footprint, facilitate expansion into untapped regions, and broaden its product portfolio. Notably, this marks the second funding round in just 12 months, following a ₹174 crore raise in November 2022. The recent financial injection also includes provisions for buying back employee stock options, offering them liquidity.
The company, co-founded by the husband-wife duo Harshil and Priyanka Salot in 2019, has witnessed remarkable growth, achieving a 2.6x revenue increase since the last funding round. With a current store count of 60 spread across 20 cities, The Sleep Company envisions further expansion, targeting 100 stores in 30 cities by the end of the current financial year and an additional 100 stores by FY 2025.
Embracing an omnichannel approach, the company now derives approximately 50% of its revenue from offline channels. As of September 2023, The Sleep Company boasts an annualized revenue run rate of around ₹350 crore and anticipates closing the current financial year with a ₹500 crore ARR. Looking ahead, the company sets ambitious goals, aiming for Ebitda profitability by FY25 and eyeing a ₹1,000 crore revenue run rate over the next two years.
The Sleep Company, known for its patented SmartGrid mattresses, has diversified into seating comfort solutions. The direct-to-consumer brand, which claims around 200,000 customers, has not only achieved contributory margin profitability but is also actively planning global expansion. Presently, the company has a presence in the UK and Japan, with aspirations for pan-European outreach in the near term. Approximately 10% of the company’s revenue already comes from outside of India.
Varun Khandelwal, Principal of Investments at Premji Invest, expressed confidence in The Sleep Company’s omnichannel growth and profitability, reaffirming their support with a doubling down on the initial investment. Fireside Ventures Co-Founder & Partner Dipanjan Basu commended the company’s exceptional performance, emphasizing their consistent profitability and robust omnichannel strategy.
As of now, the founders retain a 54% ownership stake in the company, while investors collectively hold around 46%. The company remains committed to its vision of providing cutting-edge comfort technology and enhancing its global footprint with a strong focus on customer satisfaction and profitability.
That’s incredible news! The Sleep Company has secured ₹184 crore in Series C funding to drive omnichannel growth and global expansion. They’re making big moves in the comfort-tech industry, expanding their product portfolio and increasing their offline footprint. It’s impressive to see their remarkable growth and their plans to open more stores across multiple cities. With their focus on an omnichannel approach and their innovative SmartGrid mattresses, I have no doubt they’ll continue to thrive. Sending my best wishes to The Sleep Company team.
~ Dr Shishir said Gupta founder & CEO of StartupLanes
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