Premji Invest seeks to acquire majority in Sleep Co.
- ByStartupStory | September 29, 2022
According to at least three people with knowledge of the situation, Premji Invest Opportunities Fund has emerged as the front-runner to purchase a sizable majority stake in the mattress firm The Sleep Company. The firm, which is a division of Premji Invest, the private investment arm of Wipro Ltd chairman Azim Premji, is in a difficult negotiation to invest $15-20 million (122–163 crore) in the Mumbai-based business.
Early-stage targeted entrepreneurial financing fund Fireside Ventures is a supporter of The Sleep Company. Instantaneously knowing whether or not the transaction would involve a secondary element was impossible. According to the people stated above, the firm may be in talks with many institutional buyers as well to raise funding. While The Sleep Company’s representative declined to comment, emails sent to Premji Invest and Fireside Ventures went unanswered.
The couple Harshil and Priyanka Salot founded The Sleep Company in late 2019. According to the company, their mattresses are made with patented SmartGRID technology, which replaces the traditional base of memory foam, springs, or latex with a grid-shaped hyper-elastic polymer that provides customers with a far higher level of comfort.
Along with mattresses, the company also sells office chairs, pillows, and bedding accessories including comforters and protectors. Along with its website, the company primarily sells its products on e-commerce platforms like Amazon and Flipkart.
In July 2021, The Sleep Company received $13.4 crore in its final round of fundraising, which was coordinated by Fireside Ventures. Varun Alagh, the creator of Mamaearth, also took part in the round in a personal capacity. This year, Premji Invest has made a small number of investments. It includes purchasing a small minority share in Sagar Cements as well as a follow-on round in glass manufacturer Gold Plus.
Manufacturers like FabIndia, Hygienic Research, ID Foods, Lenskart, Flipkart, Policybazaar, SBI General Insurance, Shubham Housing, Aditya Birla Capital, KreditBee, Best Value Chem, SB Packaging, and Microplastics are among the companies in which Premji Invest has previously invested. Additionally to more traditional companies like Sheela Foam and Kurl-on, India’s mattress sector is also relatively disorganised.
Additionally, new direct-to-consumer (D2C) manufacturers like SleepyCat, Sleepypanda, Wakefit and The White Pillow have entered the market. Wakefit Innovations Pvt. Ltd, a provider of home solutions, was reportedly in discussions earlier this month with a number of private equity investors to raise about $40 million in a new round of equity financing.
Additionally, in June, the sector-neutral funding organisation Ananta Capital bought the majority of shares in the mattress and sleep solutions company Springwel Mattresses Pvt. Ltd.In November 2021, Duroflex Pvt. Ltd., which conducts business as the major makers of Duroflex and Sleepyhead, raised $60 million from Norwest Venture Partners.
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