Direct-to-consumer startup The Sleep Company has raised Rs 177 crore in a mix of debt and equity in its series B funding round led by Premji Invest and Fireside Ventures with participation from venture debt firm Alteria Capital.
The company plans to utilise the funding towards expanding its retail presence and strengthening the team to build a global business. The firm has ventured into newer geographies like Japan, the UAE, and the UK, it said in a statement on November 3.
Founded in 2019 by Priyanka Salot and Harshil Salot, The Sleep Company is a tech-based consumer firm that aims to offer customers a sleeping experience that uses science and ergonomics to create comfort and optimal support for the body with affordable prices, as well as durability.
“We have gone omnichannel from just being online and we will see a lot of investment happening in this segment. We will also be doubling down on our international footprint,” said Priyanka Salot in an exclusive interaction with Moneycontrol.
“We are optimistic at bringing in Rs 1,000 crore in revenue within the next five years,” Salot said.
In an industry where the average growth rate is 40 percent, The Sleep Company has proven itself to be the fastest-growing D2C brand with an unprecedented YoY growth rate of 400 percent, it said in the statement.
With the launch of its first retail store in Bangalore in June 2022 and the second in Hyderabad in August 2022, The Sleep Company is planning to foray into the offline retail space which includes opening 25 and more stores in the coming few months as well.
“Four months back we also launched office chairs and our vision is to be the most innovative comfort-tech company…going ahead we will introduce more innovative products aligned with the vision of the company,” Harshil Salot told Moneycontrol.
The company so far has raised a total of Rs 190.4 crore ( Rs 13.4 crore in a pre-series A Round led by Fireside Ventures and Rs 177 crore in a Series B round led by Premji Invest and Fireside Ventures). These rounds also saw participation from LogX Ventures(pre-Series A), Varun Alagh, Co-Founder, Mamaearth (pre-Series A), and Alteria (Series B).
“We are now seeing sleep tech emerge as a fast-growing ecosystem both in India as well as globally. At Fireside, we are indeed very excited to partner for the second time with The Sleep company which is leading innovation in this space with their patented technology,” said Dipanjan Basu, Partner, Fireside Ventures.
The company directly competes with firms such as Wakefit, SleepyHead, and Duroflex.