India: Online mattress company Wakefit is in advanced talks with three venture capital funds to raise about Rs 40 crore ($6 million), with Sequoia Capital in the lead to clinch the deal, according to two people aware of the talks. This will be Wakefit’s first external round of investment.
Launched in 2016 by Ankit Garg and Chaitanya Ramalingegowda, Wakefit positions itself as a sleep solutions startup. It is expanding its product line to include pregnancy pillows and fitted bedsheets.
“Our mattress is currently in its 11th iteration, which we continuously change after feedback from customers. Since we started in 2016, we have sold over 1.25 lakh units and are currently at a daily run rate of 500 units of sale,” said Garg, CEO of Wakefit.
The founders declined to comment on the fund raising talks. Sequoia Capital declined to respond to email queries sent by ET.
The startup competes with popular brands including Sleepwell, Kurlon, Godrej Interio and Springwel. As India’s sole online-only mattress brand, it is similar to US-based startup Casper, which kickstarted the craze for selling the product online, sending Mattress First, the biggest mattress company in that country, almost to the brink of bankruptcy.
Wakefit products are available on Amazon, Flipkart and Pepperfry, apart from its own website, which contributes to about 50% of its sales. The company claims to be profitable, with revenue in FY18 crossing Rs 30 crore. Wakefit said it expects to end FY19 with revenue growth of over 2.5 times.
Its bestselling product is its mattress, priced between Rs 5,000 and Rs 25,000. While a large part of the capital is being raised towards expansion of the product portfolio, Wakefit is looking to offer beds/cots, neck pillows and a limited range of nightwear, driven by research to induce sleep faster for the wearer.
The company is expanding its manufacturing facility in Bengaluru and warehousing capacity in Mumbai and Hyderabad.
Wakefit has started a small pilot with an experience centre in Bengaluru and is likely to scale up its offline operations over the next year.