Wakefit FY24 Revenue Rises 25%, Losses Drop by 90%
- ByStartupStory | September 30, 2024
Bengaluru-based home and sleep solutions company, Wakefit, has reported a robust financial performance for the fiscal year 2024 (FY24), with a 25% increase in revenue and a sharp reduction in losses by 90%. The company’s revenue grew to Rs 1,017 crore, marking a 24% year-on-year increase, according to Chaitanya Ramalingegowda, co-founder of Wakefit.
The company’s net losses decreased to Rs 15 crore, a significant improvement attributed to better cost management and optimized factory utilization, which has bolstered profit margins. This marks a shift in the company’s strategy amid changing investor expectations, which now emphasize profitability over heavy reliance on external funding.
“Our investors are happy with the year-on-year performance, but we believe that we can do even better than 25% growth, which translates to an additional Rs 250 crore in business,” said Ramalingegowda.
Looking ahead, Wakefit is optimistic about maintaining its upward trajectory. Ramalingegowda anticipates a 30% revenue increase in FY25, estimating total revenue to reach between Rs 1,320 and Rs 1,400 crore. He attributes this growth to rising consumer confidence and increased discretionary spending post-Covid. However, the company remains committed to a cautious, frugal approach.
Founded in 2015, Wakefit was EBITDA (earnings before interest, taxes, depreciation, and amortisation) profitable until 2019, after which it shifted focus towards growth. In FY24, the company returned to profitability, recording EBITDA of Rs 65 crore.
Wakefit’s sales are diversified, with 30-35% of sales generated through e-commerce platforms like Flipkart and Amazon, and the remainder from its physical stores and website. The company currently operates over 80 stores and has plans to expand further.
Ramalingegowda highlighted the company’s strong financial position, stating, “Most of the USD 40 million raised in 2023 is still in the bank, so capital is not an issue.” In a recent development, Elevation Capital participated in a USD 10-12 million investment round, acquiring shares from the ESOP pool and joining the company’s cap table. To date, Wakefit has raised around USD 150 million from key investors, including PeakXV (formerly Sequoia Capital India), Verlinvest, SIG, Investcorp, and Elevation Capital.
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