BENGALURU: Wakefit.co, a home and sleep solutions startup, on Thursday said it has raised ₹200 crore, or roughly $28 million,as a part of its Series C funding round led by US-based global trading firm, SIG.
Existing investors including Sequoia Capital India and Verlinvest participated in the current round.
With the current fundraise, Wakefit.co is valued at about $380 million (or ₹2,800 crore). The current Series C fundraise comes within a year of the company raising ₹185 crore from Verlinvest and Sequoia Capital India as a part of its Series B round.
Wakefit will likely use the proceeds from the fundraise to boost hiring, increase its offline presence by setting up 20 new experience centres, and double down on growth for newer categories of furniture, home decor, utility, among others, as per the founders.
The five-year old company provides home solutions in the form of mattresses, as well as other sleep accessories including pillows, mattress covers and comforters. It forayed into furniture last year, which contributes almost 20% of its revenues, according to the company founders.
Sleep accessories and mattresses form almost 80% of revenues for the company, at present.
“The overall online segment for mattresses is growing 45% year-on-year and Wakefit has almost 70% market share in the category. With furniture in the mix, we are confident that Wakefit will reach a billion dollars in revenues by 2025,” said Ankit Garg, chief executive officer (CEO) and co-founder of Wakefit.co, in an interaction with Mint.
In addition to furniture, Wakefit will also be foraying into various categories of home decor, kitchenware and utility items over the coming months. It plans to ramp up its team to 1,500 employees from 1,000 now, with the fundraise.
“We have built the furniture category ground up, which means building factories, delivery infrastructure and making the design process inhouse. Within 14-15 months of launch, furniture is already 20% of our revenues, with 60% to 70% of repeat customers, which have bought Wakefit’s sleep solutions products in the past,” told Chaitanya Ramalingegowda, director and co-founder of Wakefit.co to Mint.
Wakefit.co is on track to achieve ₹700 crore in revenue by March 2022, the company said in a statement. It is also looking to launch international operations over the next 6-9 months and deliberating on Southeast Asia, Middle East as well as European markets for entry.
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