The Sleep Company Rolls Out Second Tranche Of INR 2.4 Cr ESOP Buyback For Employees

Sleep solutions startup The Sleep Company has rolled out the second tranche of employee stock ownership plan (ESOP) buyback for its employees.

The current buyback worth INR 2.4 Cr will benefit 105 employees, including 50% of women staffers, the company said in a statement.

Mumbai-based The Sleep Company rolled out the first tranche of its ESOP programme worth INR 83.47 Lakh last year, benefitting around 62 employees.

The new buyback will have a benefit range from junior executives to senior leadership across board and teams.

“We strongly believe that every employee must be rewarded for their contribution to the growth and success of the company and thus employees across the board will get the same amount of ESOP under the current plan. The second round of this programme also makes us the only company to offer two rounds of ESOPs within the first four years of business,” said Priyanka Salot, co-founder of The Sleep Company.

Founded by Priyanka Salot and Harshil Salot in 2019, The Sleep Company is a comfort-tech startup which offers smart mattresses, chairs, comforters, recliner beds and pillows which are underpinned by its patented SmartGRID technology. The goal is to improve consumers’ sleeping and sitting experiences.

While initially adopting a purely direct-to-customer (D2C) and an online-only model, The Sleep Company has now transitioned into an omnichannel model and owns 75+ brick-and-mortar stores across Bengaluru, Hyderabad, Chennai, Mumbai, Pune, Delhi and Ahmedabad among other cities.

To solidify its presence in tier I and II markets, it plans to scale this up to 150+ stores by the end of 2024. As part of its growth strategy, the company is also looking to hire over 500 employees by the year-end.

In the next two years, it plans to go international and become an INR 1K Cr company.

The Sleep Company saw a 2.6X jump in its revenue over the last 12 months, clocking sales worth INR 130 Cr in 2023. 

In 2022, The Sleep Company raised INR 177 Cr in its Series B funding round led by Premji Invest. The equity round also saw participation from Alteria Capital and existing investor Fireside Venture. 

In 2023, the company also bagged INR 184 Cr in its Series C funding round led by Premji Invest and Fireside Venture.

The Sleep Company competes against the likes of Wakefit, Sunday Mattresses, Sleepsia, Sleepyhead and SleepyCat among others. 

As of 2022, India’s sleep solutions and mattress market was valued at around $2.5 Bn (around INR 20,000 Cr) as per Inc42’s report.