The Sleep Company secures Rs 184 cr in Series C funding from Premji Invest

Posted on by


The Sleep Company, the sleep and sitting solutions firm, has secured Rs 184 crore in Series C funding from existing investors Premji Invest and Fireside Ventures. This comes merely 12 months after their previous investments. The firm has also launched its 60th store in India, strengthening its offline presence in a total of 20 cities across the country. The company said it has witnessed 2.6x revenue growth in the last 12 months.

 


The Series C funding round will further fuel this ongoing growth as the company aims to use this capital infusion to diversify product offerings. This includes an expansion of SmartGRID technology-based products in additional product categories. It will also energise marketing efforts to enhance brand visibility and ensure a seamless omnichannel experience for customers. The company has plans to open a total of 100 stores in the next six months, reinforcing its Pan-India presence across Tier I and Tier II markets.  


“We have witnessed an impressive 6x growth in two years, reaching an ARR (annual recurring revenue) of over Rs 350 crore as of September 2023, a significant leap from Rs 60 crore in November 2021,” said Priyanka Salot, co-founder, The Sleep Company.


In just 12 months of venturing into retail and omnichannel, the firm said it secured a balanced revenue distribution—50 per cent from offline and 50 per cent from online channels. At a time when many firms are scaling down, the startup said it continues to distinguish itself with a 3x increase in hiring compared to last year, signalling robust growth.


“Our vision of making India sleep and sit better translates into everything we do,” said Harshil Salot, co-founder, The Sleep Company. “We have designed a ‘Sleep Lab’ through which we help customers to understand and in turn, make the right decision while purchasing a mattress. So far, we have had over 2 lakh customers who have shown trust in our products.”


Varun Khandelwal, principal of investments at Premji Invest, said the company’s journey since 2019, marked by aggressive omnichannel growth and strong unit economics, has solidified the investment firm’s confidence in the startup’s capabilities. “We are reaffirming our support to The Sleep Company by doubling down on our initial investment,” said Khandelwal.


Dipanjan Basu, co-founder and partner at Fireside Ventures said the investment firm recognised the immense potential of The Sleep Company and in a year’s time, saw their superior growth trajectory, drive towards a powerful omnichannel strategy and consistent profitability. “This all-round performance reinforced our confidence in them,” said Basu.


The firm also said that it is dedicated to fostering employee ownership through ESOPs (employee stock ownership plans) to nurture a committed team and ensure comprehensive growth. This commitment extends to the creative expansion of its SmartGRID technology in various products. This includes accessories like seat cushions, back cushions, neck massager pillows and the newly launched luxe motorised recliner sofas.