Mattress startup, The Sleep Company has raised ₹177 crore in a Series B funding round, which was led by Premji Invests, Fireside Ventures, and saw participation from Alteria Capital.
According to the company, the funds will be invested in establishing a larger offline distribution system. “We will open 25 experience stores this year, and 100 stores by March 2024. These stores would be between 1200-1800 square feet, and would be mostly in the top ten cities in the country,” said Harshil Salot, co-founder, of The Sleep Company. Currently, it has three stores: Bengaluru, Hyderabad, and Thane.
The company manufactures its products in a 1,10,000-square-foot facility in Maharashtra and produces 1,20,000 mattresses annually. Salot told businessline that to double its manufacturing capacity within six-eight months, it will open a second unit. “Our new facility will be established in about four months, will be located in the south region, and will be of a similar size as the present one,” he added.
“Our investment is part of our broader thesis of India getting more online, premiumization, and increasing aspirational demand from Tier 1 towns and beyond. We see higher demand across consumption categories, including comfort, and The Sleep Company, with its product offering, is fast emerging as a brand of choice,” said the Growth Investments team at Premji Invest.
According to Salot, the company also plans to grow its eight-month-old international business as well. Currently, it has a market presence in Japan, the UAE, and the UK.
The Sleep Company expects to close FY23 with a turnover of ₹200 crore. In FY22, it clocked in revenues of ₹58 crore. As part of its five-year plan, it expects to build an ₹1,000 crore business, said the company. It has more than 200 people and plans to have more than 300 people by the end of FY23.