D2C sleep and home solution firm Wakefit has raised INR 185 million in Series B round of funding. The round was led by Verlinvest, a European investment firm and saw participation from existing investor Sequoia Capital India. With the completion of the round Wakefit has raised over $650 million.

Founded in 2016 by Ankit Garg and Chaitanya Ramalingegowda, Wakefit is best known for manufacturing high quality mattresses. The company has recently expanded its portfolio into home solutions including sofas, cots, coffee tables, wardrobes among other furnishing products.

The startup has been profitable since its inception with revenues growing from Rs 80 crore in FY 2019 to Rs 199 crore in FY 2020. A company statement mentioned that Wakefit is now aiming towards clocking a revenue of Rs 2,500 crore by FY23.

Speaking about the funding round Ankit Garg, CEO & Co-Founder, Wakefit.co said, “The investment consolidates Wakefit.co’s position as the fastest growing D2C brand in India. Given that the company has been profitable from an early stage – a rarity in the startup world – our focus has always been on high growth while maintaining strong business fundamentals.

Our product innovation and customer centric DNA has enabled us to achieve our growth targets year-on-year. The latest funding round will help us touch more lives and penetrate deeper into the Indian market.”

In a press statement the company announced that the fresh infusion of capital will help accelerate Wakefit’s strategic expansion to newer markets, foster product innovation, and leverage technology to deepen its consumer-first approach.

The Bangalore headquartered firm is all set to foray into non-metro cities across the country, with an additional capex investment in machinery, manpower addition, and factory setups on the cards.

Wakefit will also be setting up experience centres in a few cities as a pilot, in response to growing customer feedback. The team also aims to increase its workforce by 400 percent to 3,000 employees by March 2021.

Post the capital Wakefit has also instituted an ESOP buyback worth Rs 15 crore for its early employees; the firm will also be adding another 40-50 employees into the ESOP pool said the press statement released by the firm.