Direct-to-consumer mattress and furniture manufacturer Wakefit has raised $40 million
Direct-to-consumer (D2C) mattress and furniture manufacturer Wakefit has raised $40 million, with Investcorp as the major investor. The funding round also included participation from current investors Sequoia Capital India, Verlinvest, and SIG. Ankit Garg and Chaitanya Ramalingegowda, the company's co-founders, said it will utilise the capital to expand into tier II and tier III cities as well as upgrade its factory and delivery operations.
In the next 24 months, we believe we want to keep investing in the machinery and develop technology around it, according to Garg. When something needs to be produced under specific conditions and by a specific deadline, the tech will choose which things to prioritise based on the incoming orders. According to Garg, the business will provide clients more control over the product, such as the ability to customise furniture, which will be automatically transmitted to the factory floor.
“So, we will build a lot of technology in the entire manufacturing and distribution supply chain. The customer would have a lot more visibility into what is happening,” he said. Wakefit also plans to expand its offline stores to more than 100 from 12 currently. “After this fundraise we are going to invest a lot of time, money and energy to build the operations and logistics capabilities to enable us to take us to millions of homes through the supply chain,” Garg said.
He said the company will open the next set of stores in smaller cities like Coimbatore, Salem, Mysuru, Mangaluru, and Patna. “We will go deeper into the top 20 cities which will be tier I and tier II cities and that is how the footprint is going to improve,” he said. Wakefit, which started off by making mattresses, has divided its business into three units - mattresses, accessories, and furniture.
Garg said that the furniture business is growing 3x year on year and he expects the company to clock around Rs 220 crore in revenue from the new business this year. The company is betting big on its furniture business and it contributes about 25% of Wakefit’s total revenue, Garg said. Wakefit posted revenue of Rs 636 crore in FY22, a 54% jump from FY21. The company forecasts revenue to touch Rs 1,200 crore by FY24. About two-third of its sales comes from its own channels like its website, app and offline stores, while the rest is from marketplaces like Amazon and Flipkart.
In the next 24 months, we believe we want to keep investing in the machinery and develop technology around it, according to Garg. When something needs to be produced under specific conditions and by a specific deadline, the tech will choose which things to prioritise based on the incoming orders. According to Garg, the business will provide clients more control over the product, such as the ability to customise furniture, which will be automatically transmitted to the factory floor.
“So, we will build a lot of technology in the entire manufacturing and distribution supply chain. The customer would have a lot more visibility into what is happening,” he said. Wakefit also plans to expand its offline stores to more than 100 from 12 currently. “After this fundraise we are going to invest a lot of time, money and energy to build the operations and logistics capabilities to enable us to take us to millions of homes through the supply chain,” Garg said.
He said the company will open the next set of stores in smaller cities like Coimbatore, Salem, Mysuru, Mangaluru, and Patna. “We will go deeper into the top 20 cities which will be tier I and tier II cities and that is how the footprint is going to improve,” he said. Wakefit, which started off by making mattresses, has divided its business into three units - mattresses, accessories, and furniture.
Garg said that the furniture business is growing 3x year on year and he expects the company to clock around Rs 220 crore in revenue from the new business this year. The company is betting big on its furniture business and it contributes about 25% of Wakefit’s total revenue, Garg said. Wakefit posted revenue of Rs 636 crore in FY22, a 54% jump from FY21. The company forecasts revenue to touch Rs 1,200 crore by FY24. About two-third of its sales comes from its own channels like its website, app and offline stores, while the rest is from marketplaces like Amazon and Flipkart.
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