D2C mattress brand SleepyCat has raised $3.8 Mn in a round led by Saama Capital, with participation from existing investors: DSG Consumer Partners and Sharrp Ventures (Mariwala family office). This marks the company’s second external fundraise since inception, following a $1.6 Mn round led by DSG Consumer Partners and Sharrp Ventures in September 2019.
The company will use the funds to further expand its product portfolio of mattresses and other sleep wellness accessories. Additionally, the company will focus on design innovation and building more sleep solution products while expanding its manufacturing and distribution capabilities.
Founded in August 2017 by Kabir Siddiq, SleepyCat introduced India to the concept of a mattress-in-a-box and focused on ‘factory to doorstep’ mattress delivery, to solve for the broken consumer journey involved in an offline purchase.
Kiranbir Nag, partner at Saama Capital said, “Self-care has been largely neglected over the years but the pandemic has made users more aware of self-wellness and has drawn greater focus to making informed choices: what to eat, where to travel and how to sleep – a good night’s sleep is an integral part of overall wellness.”
Based in Mumbai, the company claims to have shipped over 10,000 products a month across categories, since its inception four years ago. Additionally, since its previous fund raise, SleepyCat has expanded its product portfolio to include a premium range of comfort products for the bedroom, including pillows, comforters, beds. The brand has also entered the pet bedding category with its fluffy and orthopedic pet bed offerings.
Apart from SleepyCat, Wakefit , Sleepyhead, Morning Owl and Flo Mattress are the key players in the online mattress market in India. These companies were set up post-2016 and have been in the business for less than five years. But in this short tenure, they have seen staggering growth in terms of sales. For Wakefit, Sleepyhead and SleepyCat, the combined average increase in operational revenue between FY18 and FY20 was 22.5x.
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.