As more and more Indians are looking at premium and specialised mattresses, Flo is looking to stand out from the competition with a focus on manufacturing and streamlining its D2C platform.
The Origin Story
After building a B2B business around mattresses and sleep solutions for hotels and other commercial properties, Gaurav Zatakia decided to take the B2C plunge. But caught between high margins demanded by retails and the affordability that consumers want, the startup decided to go the D2C way instead of sticking to the traditional supply chain.
The Growth
The mattress brand has gained gradual traction over the years and clocked net revenue of INR 12.5 Cr in FY2021. The D2C brand claims to have more than 1 Lakh lifetime customers with over 2 Lakh products sold across categories. Recently, it has piloted 72- hour deliveries in select cities to set itself apart from the competition, which may not have local distribution networks.
The Differentiator
Flo has opted for compressed packaging and techenabled differentiated products so that people can sleep better. It currently offers 8 SKUs, including two mattress variants and other sleep accessories such as adjustable pillows and aloe vera gel-infused mattress protectors. The entire process for selecting and buying the mattress is done online, with clear and succinct information on the different types of foams and materials that make up the product.
Since a mattress is an experiential product, and the company offers a 10-year warranty and a 100-night free trial to boost consumer confidence. It is also exploring data-driven smart solutions for product innovation in adjacent categories.
The Journey
Combined with in-house manufacturing, the D2C route allowed Flo to enhance product discovery, innovate in logistics and streamline operations. Zatakia reengineered the supply chain to cut out the intermediaries and reduce retail overheads, resulting in at least 50% savings, which helped the brand stand out among competing options.
Its ergo mattress has a temperature-sensitive memory foam which is said to boost blood circulation, while its ortho range is for people over the age of 61 and for anyone who suffers from back issues.
What’s Next
Betting on the growth potential for customised and personalised sleep products, Flo Mattress aims to double its revenue to INR 25 Cr in FY2022 and has set an INR 100 Cr target for 2025.
