Startup firm The Sleep Company achieves Rs 500 cr annual recurring revenue
After analyzing consumer behaviour, we have internally coined the ‘Ropo’ term, ‘research online, purchase offline: Harshil Salot, Cofounder, TSC
The Sleep Company (TSC), the sleep and sitting solutions firm, is eyeing profitability by the end of FY25. In just 4.5 years since its inception, the firm said that it has touched a significant milestone of achieving Rs 500 crore annual recurring revenue (ARR).
The firm said it has disrupted the traditional mattress industry and proved to have a first-mover advantage with its 100 Coco (company-owned, company-operated) stores. The firm said this makes it the fastest direct-to-consumer (D2C) brand to achieve this feat in just two years since entering the offline retail space. The company opened its first store in Bengaluru in June 2022.
“The mattress industry was highly fragmented and unorganised, dominated by distributors and dealers when we launched TSC in 2019. We believe that our omnichannel presence has disrupted the space,” said Harshil Salot, cofounder, The Sleep Company. “After analysing consumer behaviour, we have internally coined the ‘Ropo’ term, ‘research online, purchase offline’, wherein consumers research our products online and then experience the product in the store and make a purchase. Our Coco stores make us stand out in the market as they help us to provide a superior experience to our customers, ensure seamless delivery and address their queries and challenges first-hand.”
Founded in 2019 by Priyanka and Harshil Salot, TSC said it has implemented its smart grid technology in its sleep and sitting solutions. The company offers a host of products, including mattresses, sofas, pillows, cushions, bedding, office chairs, and smart recliner beds.
The company’s operating revenue surpassed Rs 127.14 crore in FY23, witnessing a significant jump from Rs 74.05 lakh in FY20. The Sleep Company said it is well-positioned to reach the Rs 1,000 crore revenue mark in the next 2-3 years. This goal will be driven by a comprehensive growth strategy, with expansion plans across India. As it looks to solidify its market position and omnichannel presence, The Sleep Company will strengthen its workforce from the current 1,000 headcount to 1,300-1,400 employees by the end of 2024.
“This rapid growth and expansion is attributed to a combination of innovative products and the expansion of our omnichannel presence,” said Priyanka Salot, cofounder, The Sleep Company. “We are now looking to enhance our position as a ‘House of Brands’ and expand our product line while setting new standards in the industry. The integration of artificial intelligence (AI) into our future products will help us further enhance customer experience.”
Last year in December, the firm secured Rs 184 crore in Series C funding from existing investors Premji Invest and Fireside Ventures. Before that, it received Rs 177 crore in a Series B funding round led by Premji Invest, Fireside Ventures, and Alteria Capital, and Rs 13.4 crore in a pre-Series A funding round.
The company has two manufacturing sites, one each in Mumbai and Bengaluru. Since December 2022, it has opened one store every 4-5 days. The firm said all of TSC stores have been EBITDA profitable since the beginning of their operations.
The company drives 85 per cent of its sales from its omnichannel presence, including retail stores and online through its website. It has the largest market share for office chairs in India, having witnessed a remarkable 10X growth since the inception of its chair category. It is looking to double market share in the next 24 months with the recent launch of its chair brand, ‘ErgoSmart by The Sleep Company’.
First Published: Jul 11 2024 | 7:09 AM IST