Sequoia-backed Wakefit posts 50% jump in revenue in FY22
- ByStartupStory | May 24, 2022
Wakefit, a home and sleep solutions company, has raised $28 million (Rs 200 crore) in a Series C funding round led by SIG, a global trading and investment firm based in Pennsylvania.
According to senior company officials, the funding round, in which existing investors Sequoia Capital India and Verlinvest also participated, values the company at more than Rs 2800 crore.
On June 4, ET was the first to report on the company’s fund-raising plans. Sequoia Capital India provided Series A funding in 2018, and Verlinvest and Sequoia Capital India will provide Series B funding of Rs 185 crores in December 2020.
The company, which began as a provider of sleep solutions, is now looking to expand into home interiors and other furniture categories.
It will compete with Livspace, Pepperfry, and others in a category that is expected to grow exponentially to $20 billion in the next three years.
“Over the last few quarters, we’ve been experimenting with newer categories and want to expand into a broader home interiors and home solutions segment.” Wakefit co founder and CEO Ankit Garg told ET, “The category is large enough, and we are perfectly positioned to capitalize on it.” “The Series C round will assist us in broadening our category offerings and creating avenues for deeper geographical penetration,” Garg added.
Wakefit, founded in 2016 by Garg and Chaitanya Ramalingegowda, sells mattresses, pillows, bed frames, mattress protectors, and comforters, as well as home products such as study tables, bookshelves, shoe racks, TV units, and dining tables.
It makes its own products in factories in Bengaluru, Jodhpur, and Delhi. It sells across the country via its own website and other online marketplaces. “The company is currently clocking an annualized revenue run rate of Rs 700 crore, nearly double what it earned in the previous fiscal year,” said Ramalingegowda, Wakefit’s co-founder and director. The company had revenues of Rs 416 crore for the fiscal year ending March 31, 2021.
“The company is currently clocking an annualized revenue run rate of Furniture that currently brings in about 20% of revenues, with sleep solutions and mattresses accounting for the majority.” “The furniture market is 20 times larger than the sleep solutions category and will grow faster in the future,” Ramalingegowda said. “We expect the furniture category to grow to nearly 50% of revenues in the coming months,” he added.
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