Bengaluru-based sleep solutions and home furniture startup Wakefit, has raised INR 200 Cr (approx $28 Mn). The Series C round was led by SIG, with participation from Sequoia Capital India and Verlinvest. With this round, the company is now valued at $380 Mn.
The funds raised will be used in three major focus areas, cofounder Chaitanya Ramalingegowda told Inc42. The startup aims to bolster the expansion of its furniture segment and will be looking to set up a state-of-the-art automated furniture manufacturing unit. Secondly, it plans to strengthen its offline presence and thus plans on expanding its experience stores pan-India. It will also use the funds to build awareness on Wakefit, and double down on its marketing efforts.
Founded in 2016 by Ramalingegowda and Ankit Garg, the startup has raised INR 450 Cr ($60 Mn) to date. Wakefit last raised INR 185 Cr in December 2020, led by Verlinvest and participation from Sequoia at a $258 Mn valuation. Before that, it had raised INR 65 Cr in December 2018.
The startup’s product portfolio includes mattresses, pillows, bed frames, mattress protectors, comforter, neck pillows and back cushions. It had recently also forayed into home products such as sofa, study tables, bookshelves, shoe racks, TV units, side tables, coffee tables, dining tables, towels, among others.
Now, the startup is in the final stages of launching a range of home decor products such as curtains, carpets, home-lightning among others.
It manufactures products in-house in Bengaluru, Jodhpur and Delhi and sells across the country through its website and other online marketplaces. With 22 experience stores in 22 towns in India, the startup aims to open more in-house stores bolstering its D2C offline presence.
The startup claims to have served 8 Lakh+ customers since its launch. In October alone, the startup clocked a sale of 1 Lakh+ mattress and over INR 100 Cr revenue amid the festive season rush.
According to Ramalingegowda, the startup is on a run rate to clock in INR 700 Cr in revenue in FY22, up from INR 416 Cr in FY21. Despite the growth, he admitted that this year Wakefit would be in a single-digit loss, as it had bet big cheques on its marketing efforts.
As seen in a recent Inc42 Plus report, the Indian mattress market, valued at $1.7 Bn in 2018, is poised to touch $2.5 Bn in 2022. The share of unbranded products stood at $570 Mn in 2018 but is estimated to grow by 64% to touch $937 Mn.
Globally, the market size may reach $40.4 Bn by 2027, from $30.4 Bn in 2019, growing at a CAGR of 4.2%.
In the past few years, the industry has witnessed a rising demand for disruptive and premium products in this space, and a dozen startups/D2C brands are catering to the changing consumer requirements.
Over the past 5-6 years, brands such as Sleepyhead, Sunday, SleepyCat, The Sleep Company (TSC), Morning Owl, Flo and others have become more prominent players in India’s ‘sleep tech’ market.