Wakefit, Sleep And Home Solutions Company, Raises ₹185 Crores In Series B

Ankit Garg

What Is Wakefit.co?

Wakefit.co is a Bengaluru-based sleep and home solutions brand which providesDirect to Customer, D2C space. It was initially set up in 2015 with an aim to elevate a culture of healthy sleep through its products.

Since the company’s establishment, it has observed a drastic annual revenue price increment of 3x its initial revenue.

The company started selling their mattresses online through D2C space and now the company has expanded its range of investment to products like neck pillows, pillows, back cushions, comforters, bed sheets, bed frames, mattress protectors, and many more products.

Wakefit.co has also believed in collaborating with various start-ups and companies which have evolved to understand the need to build a nap room in the office to de-stress their employees.

Director and co-founder of Wakefit, Chaitanya Ramalingegowda, has always been a believer in good sleeping products and hence he decided to contribute his idea of premium quality mattresses, at affordable prices, by directly making them available to their customers on their doorstep.

Ankit Garg and Chaitanya Ramalinge Gowda decided to deliver the first 100 supplies in Ankit Garg’s car and personally talk to each customer about the pain points.

This helped them develop better mattresses and after expanding their portfolio, Wakefit.co has now over 5 lakh customers.

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Ankit Garg
Image Source: Forbes India ( By Nishant Ratnakar for Forbes India) | Ankit Garg

Their Funds And Investments:

During the series A round funding, in 2018, SequoiaCapital India invested in Wakefit.co for the first time.

The valuation of the firm was ₹210 Crore, in December 2018, which drastically jumped to ₹1,900 Crore after an investment of ₹65 Crore from Sequoia Capital India, in 2020.

The firm has organized an Employee Stock Ownership Plan, Esop, buyback worth ₹15 Crore. It is instituted to benefit the early employees as the firm will add 40-50 employees to their Esop section.

Ankit Garg, CEO, and co-founder of Wakefit mentioned that the funds from the latest series B round will be used in expanding their portfolio in newer markets to encourage innovation and influence technology in their products for providing India a better sleep culture.

During the series B funding round, led by Verlinvest, a European investment firm, Wakefit successfully raised ₹185 Crore funding.

Talking about stakes, the founders will hold more than 50% stake of the company and 6% to 7% stake will be held by the employees under the Esop scheme.

Sequoia Capital India will hold 31.9% and the rest will be held by the European firm, Verlinvest.

The revenue targets of ₹1000 crore by FY23 have been told by the company and the growth has remarkably accelerated after series B round course.

The revenue of the firm has grew from ₹80 Crore, in FY19, to ₹199 crores in FY20 and is expected to be ₹400-₹500 Crore in the ongoing fiscal year.

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Their expansion:

The 2015 setup which jumped into a pool of profit by July 2016, six months after the initial operation, has now accelerated their growth after the series B funding.

They have set up their factories in Delhi, Jodhpur, Pune, Hyderabad and Bengaluru and are looking forward to expand their network for strengthening their organisation.

The company is looking forward to grab the clutches in tier II and III markets of India.

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Kritika
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