Sleep solution startup, The Sleep Company, has successfully raised INR 184 crore (approximately $22 million) in a Series C funding round, with existing investors Premji Invest and Fireside Ventures leading the investment. The company aims to utilize the capital infusion to diversify its product offerings, with a particular focus on expanding its range of ‘SmartGRID-based’ products across various categories.
This funding milestone comes just 12 months after The Sleep Company’s previous fundraising effort. In November 2022, the startup raised around INR 177 crore ($21.3 million) in a Series B round, again led by Premji Invest. The latest round signifies a strong show of confidence from existing investors in the company’s growth trajectory and market potential.
The Sleep Company, founded by Priyanka and Harshil Salot, has made significant strides in the sleep solutions market. The startup offers a range of products, including mattresses, pillows, cushions, bedding, and office chairs. Initially adopting a direct-to-consumer (D2C) model, the company has since embraced an omnichannel approach, combining online and offline retail strategies.
In a press release, The Sleep Company announced plans to expand its offline presence with the launch of its 60th store in India. Currently, the company has a retail presence in 20 cities across the country, including Bengaluru, Hyderabad, and Mumbai. The startup has ambitious plans to open a total of 100 stores in the next six months, further strengthening its reach in tier I and tier II markets.
For the fiscal year ending in March 2023, The Sleep Company reported a robust 98% increase in operating revenue, reaching INR 127 crore, according to startup data intelligence platform TheKredible. However, the company also experienced a more than three-fold surge in losses, totaling INR 37 crore during the same period.
Priyanka Salot, co-founder of The Sleep Company, highlighted the company’s remarkable growth, witnessing a 6x increase in two years. The startup achieved an annual recurring revenue (ARR) of over INR 350 crore as of September 2023, a significant jump from INR 60 crore in November 2021.
In the competitive landscape of sleep solutions, The Sleep Company faces competition from players like Wakefit, SleepyCat, and others. Wakefit, backed by Peak XV Partners, reported substantial growth, with revenue from operations increasing by 28.4% to INR 813 crore in the last fiscal year (FY23) from INR 633 crore in FY22. However, the firm also saw losses rise by 36.4% to INR 146 crore in FY23.
The latest funding round positions The Sleep Company for accelerated growth, allowing it to enhance its product offerings, expand its retail footprint, and further solidify its position in the burgeoning sleep solutions market. The continued support from investors underscores the market’s confidence in the startup’s innovative approach to addressing the evolving needs of consumers in the realm of sleep and comfort.