Wakefit Innovations Pvt. Ltd, one of the leading mattress makers and a sleep and home solutions company, on Thursday said it has raised Rs 200 crore (around) $27 million) in its Series C round of funding led by SIG Global, operated by US-based quantitative trading firm Susquehanna International Group.
Existing investors, Sequoia Capital India and Verlinvest also participated in the funding round, said Wakefit in a statement. The mattress maker has been valued at around Rs 2800 crore ($380 million) post this transaction as compared to Rs 1900 crore ($256 million) after its Series B funding round of Rs 185 crore in December last year led by Verlinvest.
Wakefit is on track to becoming a direct to consumer (D2C) unicorn, or a company with a valuation of at least $1 billion, in the next few years, it noted.
The six-year-old company will use the fresh capital to boost its supply chain and logistics management, enhance technology and drive marketing activities. It will also utilise the funds to hire across all levels.
“The infusion comes at a strategic point in time for us, as we drill down on large-scale expansion across the country. As the number one sleep player in India (online), we are aiming to replicate our success in the home and furnishings space too,” said Ankit Garg, CEO and co-founder at Wakefit.
Bengaluru-based Wakefit was founded by Garg and Chaitanya Ramalingegowda. Prior to setting up Wakefit, IIT Roorkee alumnus Garg worked at Bayer Chemicals as a management trainee while Ramalingegowda, an MBA from the Indian School of Business, had stints at Cognizant Technology Solutions, Tapzo, YourStory Media, his LinkedIn profile states.
Wakefit posted revenue of Rs 416 crore in fiscal 2020-21 and is on track to achieve Rs 700 crore in the current fiscal ending on March 31, 2022, the statement said.
Wakefit currently sells its products online and via e-commerce sites Amazon, Flipkart and Pepperfry.
With over 45% of its revenue coming from beyond the top eight cities, the company plans to cater to the increasing demand by continuing its focus on R&D and expanding product lines to include lighting, decor, furnishings and more in addition to its sleep and furniture products.
The company also have plans to set up state-of-the-art factories, warehouses and experience centers. It claims to have sold over 1 Lakh mattresses and clocked over Rs 100 crore in last month itself.
The mattress market, which is highly unorganised in India, has players such as Sleepwell, Sheela Foam and Kurl-on. Another player, Duroflex Pvt Ltd, which operates its business under two main brands Duroflex and Sleepyhead, raised $60 million from Norwest Venture Partners last month.