The Sleep Company, the sleep and seating solutions company, has secured Rs 184 crore in Series C funding from existing investors Premji Invest and Fireside Ventures. This comes just twelve months after their previous investments. The company has also launched its 60th store in India, strengthening its offline presence in a total of 20 cities across the country. The company said it has seen revenue growth of 2.6x over the past twelve months.
The Series C funding round will further fuel this continued growth as the company looks to use this capital injection to diversify its product offering. This includes an expansion of SmartGRID technology-based products into additional product categories. It will also boost marketing efforts to increase brand visibility and ensure a seamless omnichannel experience for customers. The company plans to open a total of 100 stores in the next six months, strengthening its pan-India presence in the Tier I and Tier II markets.
“We have witnessed an impressive growth of six times in two years, achieving an ARR (annual recurring revenue) of over Rs 350 crore in September 2023, a significant jump from Rs 60 crore in November 2021” , said Priyanka Salot, co-founder. The Sleep Company.
In just 12 months of venturing into retail and omnichannel, the company said it has achieved a balanced revenue distribution: 50 percent through offline and 50 percent through online channels. At a time when many companies are scaling down, the startup says it continues to differentiate itself with a threefold increase in hiring compared to last year, indicating robust growth.
“Our vision to help India sleep and sit better translates into everything we do,” said Harshil Salot, co-founder of The Sleep Company. “We have designed a 'Sleep Lab' to help customers understand the mattress and in turn make the right decision. So far, we have had over 2 lakh customers who have shown confidence in our products.”
Varun Khandelwal, director of investments at Premji Invest, said the company's journey since 2019, marked by aggressive omnichannel growth and strong economic conditions, has strengthened the investment firm's confidence in the startup's capabilities. “We are reaffirming our support for The Sleep Company by doubling our initial investment,” said Khandelwal.
Dipanjan Basu, co-founder and partner at Fireside Ventures, said the investment firm recognized the immense potential of The Sleep Company and within a year saw their superior growth trajectory towards a powerful omnichannel strategy and consistent profitability. “This all-round performance strengthened our confidence in them,” said Basu.
The company also said it is committed to promoting employee ownership through ESOPs (employee stock ownership plans) to nurture a dedicated team and ensure extensive growth. This commitment extends to the creative extension of SmartGRID technology in various products. This includes accessories such as seat cushions, back cushions, neck massage cushions and the recently launched luxury motorized recliners.
