A home and sleep solutions company, Wakefit has raised Rs 200 crore in a Series C funding round from investors led by US-based SIG, a global trading and investment firm headquartered in Pennsylvania.
The funding round in which existing investors Sequoia Capital India and Verlinvest also participated values the company at over Rs 2,800 crore, according to senior company officials.
The company has received Series A funding from Sequoia Capital India in 2018, and Series B funding of Rs 185 crore from Verlinvest and Sequoia Capital India in December 2020.
The company that started off as a sleep solutions provider is now looking at growing into home interiors and other furniture categories. It will compete with the likes of Livspace, Pepperfry among others in a category that is expected to grow exponentially to $20 billion over the next 3 years.
Ankit Garg, Co-founder, and CEO, Wakefit, said, "For the last couple of quarters, we are experimenting with newer categories and want to expand into wider home interiors and home solutions segment. The category is large enough and we are perfectly positioned to capitalize on it. The Series C round will help us broaden our category offerings, as well as create avenues for deeper geographical penetration."
Founded in 2016 by Garg and Chaitanya Ramalingegowda, Wakefit sells mattresses, pillows, bed frames, mattress protectors, comforters, and has now expanded to include home products such as study tables, bookshelves, shoe racks. TV units, dining tables among others.
It manufactures its products in-house at factories in Bengaluru, Jodhpur, and Delhi. It sells across the country through its own online portal and through other online marketplaces. The company will use the funding to further strengthen its omnichannel expansion plans, boost supply chain and logistics management, technological enhancement, and marketing.
"The company is currently clocking annualized revenue run rate of Rs 700 crore almost double of what it earned in the last financial year," said Ramalingegowda, Co-founder and Director, Wakefit.
For the financial year ending March 31, 2021, the company had revenue of Rs 416 crore.
Furniture currently brings in about 20 percent of the revenues while the larger chunk continues to come from sleep solutions and mattresses.
"Furniture market is 20 times larger than the sleep solutions category and is expected to grow faster going forward," Ramalingegowda said. "We expect the furniture category to grow to almost 50 percent of the revenues over the next few months," he added.
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