Sleep Company raises Rs. 184cr; doubles valuation in one year
The Sleep Company, a Mumbai-based start-up, has secured Rs. 184 crore in a Series C funding round led by Azim Premji-backed Premji Invest and Fireside Ventures. Since its last funding round in October 2022, the company's valuation has doubled. Established in 2019 by Harshil and Priyanka Salot, The Sleep Company specializes in comfort tech products, including mattresses, ergonomic chairs, pillows, and remote-controlled recliner beds and sofas. The new investments arrive as both profits and an IPO roadmap become increasingly evident.
Expansion plans and revenue expectations
With this new funding, The Sleep Company aims to expand its retail presence in India. Harshil stated, "We currently have 60 experience centers across 20 cities in India. We plan to take that up to 100 by March of this year and about 200 by March of next year." The firm anticipates a revenue of Rs. 350 crore for the fiscal year ending March 2023, more than two-and-a-half times the previous year's revenue.
The company aspires to become top global comfort tech brand
The founders' goal is to make The Sleep Company the world's top comfort tech brand. "We are already selling our products in Japan and the United Kingdom. We want to make one market very successful and then use that playbook across different markets," said Harshil. Priyanka told CNBC-TV18 that they aim for Rs. 1,000 crore in sales within the next two to three years and plan to become a publicly listed company.
The company offers SmartGRID technology and various product offerings
Harshil and Priyanka collaborated with a Defence Research and Development Organisation (DRDO) scientist for 18 months to create their patented SmartGRID technology. Priyanka explained that their mattresses provide an alternative to memory foam mattresses by being soft on curvatures like the head, shoulder, and hips while remaining firm under the spine. The company also plans to launch accessories such as seat cushions, back cushions, neck massager pillows, and motorized recliner sofas.
The company's top line is forecasted to double in FY24
In FY22, The Sleep Company reported a revenue of Rs. 56 crore, up from Rs. 11.8 crore in FY21. It experienced a loss of Rs. 11.6 crore in FY22 after generating a profit of Rs. 87 lakh in FY21. The firm's top line is projected to double to approximately Rs. 350-370 crore in the current fiscal year. The Sleep Company faces competition from brands like SleepyCat, Sundayrest, and Sleepyhead, and traditional players like Sheela Foam, the company behind Sleepwell.
