The new-age mattress company Sleepyhead brings a variety of smart sleep solutions to help Indians get the best sleep, but has plans to take over other parts of the home too.
The Origin Story
When Mathew Joseph got a luxury mattress as a wedding gift, he understood the pain points of customers who buy them offline. First, it was way too costly, thanks to intermediaries’ profit margins and the transportation cost. Second, the delivery went awry as the mattress did not fit in the lift. Third, its comfort level did not match his requirement. Finally, the product came without an exchange/return policy. Joseph quickly realised the tremendous need gap and wanted to solve it for new-age buyers who prefer quality, hassle-free shopping and a good experience post-purchase. So, Sleepyhead was rolled out to help customers on all these points.
The Growth
Sleepyhead claims to have sold over 4.1 Lakh products till date. It earned INR 84.8 Cr in revenue in FY21 and crossed the FY22 target of INR 100 Cr by December 2021. Besides mattresses and sleep solutions, the startup has also forayed into furniture and home décor space and evolved as a lifestyle brand, offering a total of 218 SKUs across categories
The Differentiator
The company offers an innovative product line of memory foam and latex foam mattresses. Of these, one provides three-zoned orthopaedic support, and another comes with a cooling technology used in spacesuits to regulate body temperature. Then there is a dual-comfort mattress and another made of natural latex foam, ensuring multilayer support, uniform pressure distribution, breathability and durability.
Sleepyhead’s furniture range comes in a DIY format that can be easily assembled without tools. Many of these are multipurpose products ideal for spacecrunched urban living. For instance, a sofa for formal sitting can be converted into a relaxing lounger and a double bed for sleeping.
The Journey
The D2C mattress maker focusses on three critical aspects – comfort, convenience and cost benefits. Sleepyhead is able to sell top quality mattresses at a lower price due to its digital-only model resulting in low overheads and its bed-in-a-box concept – mattresses vacuum roll-packed into nifty boxes to reduce logistics costs. However, its USP is getting the right mattress for every customer based on a 100-night trial period and a 100% refund policy in case a customer returns it. Its flagship products include foam mattresses, protectors and pillows as well as multiutility household furniture.
What’s Next
The startup wants to grow its revenue to INR 300 Cr by FY23 through vertical and horizontal growth. Its ‘home living’ vertical will feature bedroom and living room furniture, while the home décor segment will specialise in bed linens and cushion covers. The next goal is to foray into kitchen, dining, garden and hallway furniture and décor and emerge as an INR 1,000 Cr design-forward lifestyle brand by 2025.
