SUMMARY
Flo Sleep utilises the art of building great sleep products and a D2C distribution model to deliver incredibly comfortable and affordable products
The Origin Story
Gaurav Zatakia spent nearly a decade building Hush, a family business that supplied mattresses and other sleep essentials to top hotels in India. His mattresses received excellent reviews, and some hotel guests said they had the best night’s sleep. Boosted by the praise, he decided to retail his offerings. It was a challenging task, as he soon found out, due to high margins, while price-conscious Indian customers were not ready to pay extra. The only way out was to take the D2C route and sell to his customers online. The rise of the D2C wave in the West further encouraged him, and Zatakia set up his D2C brand Flo in 2018.
The Differentiator
Flo has delved deep into the consumer psyche, focussing on two critical areas – comfort and cost. So, the team tested more than 130 foam combinations for over two years to create top-rung products. Selling these online helped the startup do away with intermediaries and retail overheads, resulting in at least 50% savings. As Flo offers an experiential product, each shopper gets a free trial for 100 nights and a 10-year warranty.
The Growth
Flo sells its products on its website, Amazon and Flipkart to make a good night’s sleep affordable. It runs two production units in Mumbai, has sold 450K+ products and served 250K+ users, clocking a 62% YoY revenue growth in FY23. It also released its first brand film, 9-minute ki neend, in November 2023.
What’s Next
Flo eyes 2x growth in products sold and customers served in the current calendar year and wants to start offline retailing in 2025 to turn mattress shopping into a fun, family experience. It also aims to zoom past INR 125 Cr in annual net revenue while remaining profitable.
