The Sleep Company has secured $22 million (Rs 184 crore) in Series C funding, to expand product portfolio, and SmartGRID-based products. Further, it plans to create additional product categories and marketing efforts to augment brand visibility. The startup claims its mattresses incorporate a patented ‘SmartGRID’ technology.
Going forward, the firm expects to turn profitable by the end of FY25, according to the Co-founders Harshil and Priyanka Salot. The company reported a business growth of 2.6X in the last 12 months.
Founded as a D2C brand in 2019, the company also markets pillows, cushions, sheets, and chairs. In March 2022, The Sleep Company grew to become an omnichannel presence, with its first offline store in Bengaluru.
So far, it has established more than 60 retail stores, along with 16 experience centres across more than 20 cities. In the next six months, the company plans to open a total of 100 stores, with a special focus on Tier II and Tier III markets, according to Harshil.
The Sleep Company Chalks Out Ambitious Growth Plans
“The offline stores are working very well for us and are already contributing 50% to the business. The idea is to maintain the momentum of expansion and touch 100 stores by March 2024 and 200 by March 2025. A significant portion of the funding will be used to improve distribution and footprint expansion,” Harshil added.
Sleep solutions brand clocked a revenue of about Rs 130 crore in FY23 and expects to earn nearly Rs 350 crore in FY24. Priyanka credits the strong growth momentum to three main factors.
To begin the The Sleep Company had a strong focus on innovation and have not created a me-too product. Also, customer-acquisition costs (CAC) remained a plus point and don’t bleed money with every order. Secondly, its omnichannel focus has helped bring better conversion rates since mattresses are a touch-and-feel category. Finally, laser-sharp focus on backward integration, complete in-house manufacturing, and the absence of middlemen helped the company in offering better prices to consumers.
The fresh infusion of capital follows a year after it had raised nearly $21.3 million from the same investors. The Mumbai-based company is now valued at more than 2X of its previous funding round, Co-founder Harshil Salot stated without divulging absolute numbers.
The funding was raised from exisiting investors Premji Invest and Fireside Ventures.
