Bengaluru-based mattress and sleep-related products provider, Wakefit has raised $9 Mn (INR 65 Cr) in its first funding round led by Sequoia Capital for 31.9% stake.
The startup plans to use the fresh funds to strengthen its manufacturing arm by introducing automation and boosting its production capacity from 250 mattresses per day to 700 mattresses per day. It will also introduce newer product ranges, including bed sheets fabricated with wood pulp fibres, comforters, pillows, and sleepwear. The startup will also use the funds to educate customers regarding the role of a quality mattress in human health and wellbeing.
Founded in 2015 by Ankit Garg and Chaitanya Ramalingegowda, Wakefit researches on sleep and spine support to create innovative products. The company has taken a customer response driven mechanism to understand people’s sleep patterns and preferences and design its products based on the reviews.
For the financial year 2017-18, the company recorded a revenue of $3.83 Mn (INR 27.6 Cr) with a net profit of $305.9K (INR 2.2 Cr), against $931.8K (INR 6.7 Cr) revenue and $50K (INR 36 Lakh) profit for the previous year. The company claims to be valued at more than $29.2 Mn (INR 210 Cr).
The startup currently offers customer-friendly features such as a 20-year warranty and 100-day risk-free trial. Going forward, Wakefit plans expansion into 20 tier 2 cities across India.
Of India’s total $18 Bn (INR 1,294,06 Cr) furniture market, 85-90% is unorganised and offline. Here, online furniture retailers like Urban Ladder, Furlenco, and Pepperfry cater to just 2% of the market.
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.