Wakefit.co, a D2C home and sleep solutions company, has raised ₹320 crore ($40 million) in its Series D round of funding.

The funding round was led by Investcorp, with participation from all the existing investors — Sequoia Capital India, Verlinvest, and SIG. IndigoEdge was the exclusive advisor for Wakefit.co on the transaction.

The funding will be deployed to expand its offline presence from 12 to 100 stores across 20 cities. Going forward, it will continue to open more stores in both metro and tier-2 cities. Additionally, the funds will boost its manufacturing and supply chain capabilities, ramp up hiring across levels, and also enhance brand-building initiatives.

Chaitanya Ramalingegowda, Director and Co-founder, Wakefit.co said, “Going from 12 to 100 stores is a big part of our strategy because that enables us to build brand recall. Moreover, it enables us to be closer to consumers. Currently, we are at a scale where we have to be present both online and offline.”

Ramalingegowda added, “We have also seen that customers are transacting nearly double the average order value offline, and they’re buying more furniture in stores compared to buying online.”

Additionally, the company also aims to generate a revenue turnover of ₹1,200 crore in FY24. “We expect to close this year’s revenues at around ₹900 crore,” he said. In FY22, Wakefit.co clocked in at ₹636 crore in revenue.

Push for better manufacturing and supply chain capabilities

“The funding round will solidify our position in the home and sleep solutions space and will enable us to scale up our manufacturing and supply chain capabilities,” said Ankit Garg, CEO and co-founder of Wakefit.co.

The company attributed its ability to raise funds to three reasons.

“Our manufacturing and design cannot be copied overnight; two of the three business lines — mattresses and accessories are already profitable businesses, with only furniture remaining to become profitable; and the deeply complementary capabilities that Ankit and I bring to the table. Hence, we were able to raise funds even in a tough environment,” explained Ramalingegowda.

The company, which has been in business for almost seven years, claims to have served over 1.5 million customers.