The Sleep Company raises Rs 480 crore in funding led by ChrysCapital, 360 ONE Asset

The Sleep Company raises Rs 480 crore in Series D funding led by ChrysCapital, 360 ONE Asset

The Sleep Company has raised Rs 480 crore (around $55 million) in a Series D funding round led by ChrysCapital and 360 ONE Asset, as the mattress and bedding solutions provider eyes deeper offline expansion, new categories, and scaled-up manufacturing to fuel its next phase of growth.

Moneycontrol was the first to report in April that the company was negotiating with Kedaara Capital, ChrysCapital, IIFL and others to raise over Rs 500 crore in fresh capital.

The fundraise comes at a time when rival Wakefit, backed by Peak XV Partners (formerly Sequoia India), is preparing for an IPO and has already filed its draft papers with Sebi.

The new capital will be deployed towards expanding The Sleep Company’s store footprint in metros and Tier-1 cities, boosting manufacturing capacity, and investing in R&D to extend its patented SmartGRID technology across more products. The firm, which recently launched its 150th exclusive outlet, claims to have crossed a Rs 700 crore annual revenue run rate, growing 60% year-on-year in FY25.

“This fundraise powers the next phase of our journey to lead the comfort-tech revolution in India,” said co-founders Priyanka and Harshil Salot. “We’re scaling faster—opening more stores, expanding capacity, and doubling down on innovation… this sets us up for the next three years—to scale with intent, grow sustainably, and move closer to our goal of becoming a cash-positive, innovation-first business.”

ChrysCapital’s Rajiv Batra said the firm’s patented technology, omnichannel strategy and strong operational metrics position it well to ride India’s premiumization wave. “We believe The Sleep Company is poised to become a dominant force not only in sleep solutions but across the wider comfort and wellness landscape.”

Chetan Naik of 360 ONE Asset said the company’s capital-efficient growth, science-backed innovation and immersive offline experience made it a compelling bet. “With growing consumer resonance and an expanding product portfolio, The Sleep Company is well poised to become a category-defining brand.”

Avendus Capital was the exclusive financial advisor on the transaction.

The Bengaluru-based firm is raising a new round after it has scaled and shown venture capitalists the potential to provide an outsized return. In FY23, the company posted revenues of Rs 130 crore and then grew 148 percent to Rs 320 crore in FY24, as per data available on Tracxn, a private markets data provider. During the same period, its losses widened from Rs 37 crore to Rs 59 crore.

The Sleep Company was founded in 2019 and is run by a husband-wife duo, Harshil Salot and Priyanka Goyal Salot. It has raised over $50 million from a bunch of investors and also counts Premji Invest as its backer.