Wakefit. co, a direct-to-home and sleep solutions company aims to strengthen its omnichannel presence by adding 90 stores in 25 cities in the next three years. It also expects to generate ₹2,000 crore in three years, according to Chaitanya Ramalingegowda, Co-Founder and Director. The company made ₹636 crore in revenue in FY ’22.
The company has invested $20 million in establishing its latest and largest factory in Hosur, Tamil Nadu. The 14-acre facility can produce 5,000 beds, 2,000 sofas, and 3,000 dining tables per day, said Ankit Garg, Co-Founder and CEO, Wakefit.
The decision to locate the furniture factory in Hosur was motivated by the need for skilled labour, said Garg. The factory, which has 200 high-end machines, is in need of skilled operators. “The method of making furniture in Jodhpur is still traditional (Wakefit has a factory in the city). We wanted to ensure the most cost-effective method of production possible through the use of machines, but that required skilled labour, which was available here,” explained the CEO.
Building copy-paste model
While it is their largest establishment, Ramalingegowda said the factory is sufficient to fulfill demand in Bengaluru and Mysuru. “We want to build a copy-paste model of the Hosur facility that can be executed in several places as the demand grows. We will take a call to build another factory by March ’23”, he added.
Ramalingegowda said to Businessline, “This year we will add 15 new offline stores across the seven cities that we are present in. So, the format for expansion would remain the same. We will increase our footprint in those seven cities, and open more stores in larger cities and relatively fewer stores in smaller cities.” It currently has ten stores.
In addition to expanding its offline presence, Wakefit intends to scale its furniture and accessories business to generate revenue in a 50:50 split. “Currently, mattresses account for 60-65 per cent of our business, with the remainder coming from furniture and accessories.”
The company is also in the process of raising another round of funding, which will be announced in the coming months.