The Sleep Company Raises ₹184 Crore in Series C Funding Round Led by Premji Invests and Fireside Ventures

• ByStartupStory     |    December 6, 2023

Direct-to-consumer mattress maker The Sleep Company has secured ₹184 crore in a Series C funding round, with leading contributions from Premji Invests and Fireside Ventures, both of which had previously invested in the company. This funding round comes 12 months after their initial investments.

According to the company, the newly acquired funds will be utilized to expand and diversify its product offerings, with a focus on SmartGRID-based products across various categories. Currently boasting 60 stores in 20 cities, The Sleep Company aims to open an additional 40 stores in the next six months, targeting both Tier-I and Tier-II markets.

Priyanka Salot, Co-Founder of The Sleep Company, shared insights into their growth strategy, stating, “We look to open about seven-eight stores on a monthly basis for the next one-and-a-half years.” She highlighted the company’s impressive 6x growth over two years, reaching an Annual Recurring Revenue (ARR) of over ₹350 crore as of September 2023, a substantial leap from ₹60 crore in November 2021.

The Sleep Company’s retail stores are designed to educate customers not only about SmartGRID technology but also about the significance of maintaining proper body posture and addressing pressure points.

As of now, online sales contribute 50% to the company’s business, with the remaining 50% coming from offline channels. Harshil Salot, Co-Founder, stated, “With the increase in our retail footprint, we expect our offline business to start contributing around 65 per cent of the business in the coming year.”

To enhance customer understanding, the company has introduced a ‘Sleep Lab’ that aids customers in making informed decisions while purchasing mattresses. The Mumbai-based company reported a notable increase in revenue, reaching ₹56 crore in FY22, up from ₹11.8 crore in FY21, as per Tracxn, a private markets data provider.

Founded in 2019 by Priyanka and Harshil Salot, The Sleep Company positions itself at the intersection of technology, science, and ergonomics, offering a range of products including office chairs, pillows, and mattresses. The company competes with other players in the market such as SleepyCat, Sundayrest, and Sleepyhead.

 

Follow Startup Story