Mumbai-based direct-to-consumer mattress brand SleepyCat has raised $1.5 Mn in its Series A seed round from DSG Consumer Partners and Sharrp Ventures. Gemba Capital and other angel investors have also participated in this round.
The new capital will be invested towards building the online presence of SleepyCat through channel partnerships, new product launches and investing in its management team.
Founded by Kabir Siddiq in 2017, SleepyCat offers doorstep delivery of vacuum pressed mattress in compact boxes which make the logistics much more efficient than the traditional mattresses. The company currently sells only through its website and Amazon. It claims to be selling around 1.5K mattresses a month.
Commenting on the fundraise, Siddiq said, “We are looking to build our team, infrastructure and technology with the infusion of funds.”
SleepyCat’s product portfolio includes a memory foam mattress, latex foam mattresses, waterproof mattress protectors which come as fitted bed covers, 100% organic breathable latex mattress for babies, innovative platform bed base which requires no tools for assembly, and pillows, to complement the existing range of mattresses.
Deepak Shahdadpuri, managing director of DSG Consumer Partners, said, “SleepyCat provides a compelling experience for the customer by simplifying choice at the time of purchase, employing lean distribution channels that enable attractive pricing and offering a 30-day trial period.”
“The company has an exciting new sleep solutions products in the pipeline. It also is a rare specimen for a start-up in being profitable at the time of our investment,” he added.
As a part of this deal, Hariharan Premkumar from DSG Consumer Partners and Chaitanya Deshpande of Sharrp Ventures will join SleepyCat’s board of directors.
Mattress Market In India
According to RedSeer, the mattress market in India was valued at around $1.7 Bn in 2018 and is expected to grow at a CAGR of 10% to reach $ 2.5 Bn by 2022. The major chunk of the furniture retailing market in India is still with traditional players such as Godrej and Home Centre and Sleepwell in the mattress industry.
However, global furniture and home furnishing retailer Ikea has changed the game with its price-sensitive products attached to brand-tag and well-placed billion dollars of investment to grow and mark its presence in the Indian market.
Some of the new entrants in this space include WakeFit, Mattress Box, Sunday Rest, Wink & Nod. Last year, Bengaluru-based Wakefit has raised $9 Mn funding round led by Sequoia Capital.