Mattress maker Wakefit Innovations Pvt. Ltd has raised Rs 65 crore ($9 million at current exchange rates) in a Series A round of funding from venture capital firm Sequoia Capital, a company statement said.
The VC firm has picked up a 31.9% stake in the company, the statement added.
The firm will use the capital to strengthen its manufacturing and fulfillment capabilities across the country, build its brand and hire the right talent, Ankit Garg, co-founder and chief executive of Wakefit, said in the press note.
The company will use 10-15% of the money raised to automate processes and increase production capacity at its manufacturing arm from 250 mattresses per day to 700 mattresses per day. It will also launch new products such as bed sheets fabricated with wood pulp fibers, comforters, pillows and sleepwear, the statement added.
Incorporated in 2016, Bengaluru-based Wakefit Innovations Pvt. Ltd was founded by Garg and Chaitanya Ramalingegowda.
Prior to setting up Wakefit, Garg, an alumnus of IIT Roorkee, 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 makes mattresses, pillows and mattress protectors. It currently sells its products online and via e-commerce sites Amazon, Flipkart and Pepperfry.
The company’s revenue stood at Rs 27.6 crore for the year ended 31 March 2018 as against Rs 6.7 crore in the previous year. It made a net profit of Rs 2.2 crore in 2017-18, up from Rs 36 lakh in the year before.
The multi-stage investment firm had closed its sixth fund at $695 million to invest in early- and growth-stage companies in the country and Southeast Asia in August this year.
The fund will invest in the technology, consumer and healthcare sectors.
Sequoia Capital has invested at the very early stages in many startups, including Citrus, Faasos, FreeCharge, Grofers, Mobikwik, Pine Labs and Practo.
The major players in the mattress industry include Duroflex, Sheela Foam, which makes products under the Sleepwell brand, and Kurlon.
In October this year, mid-market consumer-focused private equity firm Lighthouse Advisors had invested Rs 160 crore ($22 million) in mattress company Duroflex.