THE SLEEP COMPANY RAISES $22M SERIES C FUNDING

The Sleep Company, a startup aiming to dethrone traditional mattress giants with its innovative approach to sleep solutions, has just secured a hefty $22 million (Rs 184 crore) in Series C funding. This fresh capital injection comes from existing investors Premji Invest and Fireside Ventures, who are doubling down on their belief in the company's potential.

A 2X Valuation Leap and a Profitability Promise:

The funding marks a significant milestone for The Sleep Company. Not only does it represent a 2X increase in valuation compared to the previous round, but it also comes with a bold promise: profitability by the end of FY25. This ambition is backed by an impressive 2.6X growth in the past year, proving that their sleep-centric strategy is resonating with customers.

Product Diversification and SmartGRID Expansion:

The Sleep Company, known for its SmartGRID-equipped mattresses, plans to leverage the funding to diversify its offerings. SmartGRID, a patented technology that personalizes sleep experience through temperature and firmness adjustments, will be integrated into new product categories beyond mattresses. Additionally, marketing efforts will be amplified to boost brand visibility and attract even more customers to their innovative sleep solutions.

From D2C to Omnichannel Powerhouse:

What started as a direct-to-consumer (D2C) brand in 2019 has undergone a remarkable transformation. Recognizing the importance of a touch-and-feel experience for mattresses, The Sleep Company ventured into the omnichannel space in 2022, opening its first offline store in Bengaluru. Today, they boast over 60 retail stores and 16 experience centers across 20+ cities.

Aggressive Expansion Plans:

But this is just the beginning. The company is setting ambitious expansion goals, targeting a total of 100 stores by March 2024 and a staggering 200 by March 2025. Tier II and Tier III markets will be a particular focus, bringing the Sleep Company experience to a wider audience.

Offline Success and Profitability Drivers:

The omnichannel approach has proven immensely successful. Harshil Salot, co-founder, reveals that offline stores now contribute a whopping 50% to the business. This, coupled with low customer-acquisition costs and in-house manufacturing, allows The Sleep Company to offer competitive prices and contribute to its profitability goals.

From Rs 60 Crore to Rs 350 Crore in Two Years:

The numbers speak for themselves. The Sleep Company has witnessed a phenomenal 6X growth in just two years, reaching an ARR of over Rs 350 crore, a significant leap from Rs 60 crore in November 2021. This trajectory inspires confidence in both the company and its investors.

Investors Reiterate Confidence:

Varun Khandelwal of Premji Invest emphasizes their unwavering belief in The Sleep Company's capabilities, citing their aggressive omnichannel growth and strong unit economics. Similarly, Dipanjan Basu of Fireside Ventures applauds their exceptional growth, powerful omnichannel strategy, and consistent profitability, making continued support a no-brainer.

The Sleep Company's story is a testament to the power of innovation, adaptability, and a laser-sharp focus on customer needs. With a comfortable cushion of funding, a clear vision, and a commitment to omnichannel expansion, they are poised to redefine the sleep industry, one mattress at a time.

Additional details:

• The company also sells pillows, cushions, sheets, and chairs besides mattresses.

• A significant portion of the funding will be used for distribution and footprint expansion.

• The company expects to reach Rs 350 crore in revenue in FY24.