The Sleep Company Secures Rs 184 Crore in Series C Funding
The Sleep Company, a direct-to-consumer mattress manufacturer, announced securing Rs 184 crore in its Series C funding round, with existing investors like Premji Invest and Fireside Ventures increasing their investment in the company. The funds will be utilized to diversify product offerings, strengthen brand presence, and bolster its omnichannel strategy. Currently operating 60 stores, the company plans to expand its offline presence, aiming to launch a total of 100 stores in the next six months, particularly focusing on Tier 1 and Tier 2 cities. Priyanka Salot, Co-Founder of The Sleep Company, highlighted the company's remarkable growth, achieving a notable 6x increase in two years, resulting in an annual revenue run rate (ARR) exceeding Rs 350 crore as of September 2023, a substantial rise from Rs 60 crore in November 2021.
The Sleep Company has considered introducing additional accessories such as seat cushions, back cushions, neck massager pillows, and motorized recliner sofas all utilizing its Smartgrid technology as part of its strategy to diversify revenue streams. Although the company did not disclose its current valuation, The Sleep Company might be valued at approximately $180 million, a significant increase from its prior valuation of roughly $120-130 million. Dipanjan Basu, Co-Founder of Fireside Ventures, expressed enthusiasm about The Sleep Company's remarkable growth, robust omnichannel strategy, and consistent profitability within a year, acknowledging the company's immense potential.
Fireside Ventures, which supports direct-to-consumer (D2C) brands, notably experienced substantial returns from its initial investment in Mamaearth, a brand that went public earlier this year. According to Tracxn, a private markets data provider, the Mumbai-based company concluded FY22 with revenue reaching Rs 56 crore, a notable increase from Rs 11.8 crore in FY21. The Sleep Company, which generated a profit of Rs 87 lakh in FY21, faced losses, incurring a deficit of Rs 11.6 crore in FY22. Despite witnessing growth in the past fiscal year, it is estimated that The Sleep Company might have reached a revenue of approximately Rs 150-170 crore in FY23 but remained a venture operating at a loss. The company has yet to submit its FY23 results. The anticipated turnover for the company is projected to double to about Rs 350-370 crore in the current fiscal year.
The Sleep Company has considered introducing additional accessories such as seat cushions, back cushions, neck massager pillows, and motorized recliner sofas all utilizing its Smartgrid technology as part of its strategy to diversify revenue streams. Although the company did not disclose its current valuation, The Sleep Company might be valued at approximately $180 million, a significant increase from its prior valuation of roughly $120-130 million. Dipanjan Basu, Co-Founder of Fireside Ventures, expressed enthusiasm about The Sleep Company's remarkable growth, robust omnichannel strategy, and consistent profitability within a year, acknowledging the company's immense potential.
Fireside Ventures, which supports direct-to-consumer (D2C) brands, notably experienced substantial returns from its initial investment in Mamaearth, a brand that went public earlier this year. According to Tracxn, a private markets data provider, the Mumbai-based company concluded FY22 with revenue reaching Rs 56 crore, a notable increase from Rs 11.8 crore in FY21. The Sleep Company, which generated a profit of Rs 87 lakh in FY21, faced losses, incurring a deficit of Rs 11.6 crore in FY22. Despite witnessing growth in the past fiscal year, it is estimated that The Sleep Company might have reached a revenue of approximately Rs 150-170 crore in FY23 but remained a venture operating at a loss. The company has yet to submit its FY23 results. The anticipated turnover for the company is projected to double to about Rs 350-370 crore in the current fiscal year.
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