Sequoia-Backed Wakefit Secures $45 Mn Funding From Investcorp

Sleep solutions and mattress brand Wakefit has reportedly raised about $45 Mn in an equity funding round at a post-money valuation of $303 Mn (INR 2,500 Cr). The startup has raised investment from Bahrain-based alternate investment firm Investcorp. 

Wakefit’s existing investors including Sequoia Capital India will also participate in the funding round.

The startup plans to use the incoming capital for business expansion, acquire small brands and also, to buy back employee stock options. Including the current fundraising, the startup has raised a total of $105 Mn funding to date.

The development has come at a time when Wakefit raised about $28 Mn in Series C funding round led by SIG. Sequoia Capital India and Verlinvest also have participated in the funding round. 

Set up in 2016 by Ramalingegowda and Ankit Garg, Wakefit sells varied sleep and home-related products such as mattresses, pillows, bed frames, mattress protectors, sofa, study tables, bookshelves, shoe racks and TV units, among others.

The startup sells these products via its website, ecommerce marketplaces and offline retail stores. It has an offline presence in various Indian cities including Delhi, Bengaluru and Lucknow.

In 2020, it secured INR 185 Cr from Verlinvest and Sequoia. Prior to that, it bagged INR 65 Cr funding in December 2018.

In the financial year 2021-22 (FY22), its losses soared by 2.7x to INR 101.8 Cr against INR 37 Cr recorded in the previous fiscal year (FY21). Meanwhile, its operating revenue climbed up by 55% to INR 632.8 Cr in FY22 as compared to losses worth INR 408.6 Cr reported in the former financial year.

In India’s D2C segment, it competes with the likes of Sleepyhead, Sunday, The Sleep Company and SleepyCat. 

According to a Research and Markets report, the country’s mattress sector has grown to INR 13,000 Cr in the past five years, growing at a CAGR of over 11% in the forecasting period. 

Meanwhile, an Inc42 report states that the global mattress market is expected to become a $40.4 Bn space by 2027, growing at a CAGR of 4.2% during 2019-27. On the other hand, the country’s mattress market is valued at $2.5 Bn in 2022.

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