The funding round in which existing investors Sequoia Capital India and Verlinvest also participated values the company at over Rs 2800 crore, senior company officials told ET.
ET was the first to report about the company’s fund-raising plans on June 4. The company has received Series A funding from Sequoia Capital India in 2018, and Series B funding of Rs 185 crores 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.
“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 capitalise on it,” Ankit Garg, cofounder and CEO, Wakefit told ET. “The Series C round will help us broaden our category offerings, as well as create avenues for deeper geographical penetration,” Garg added.
Founded in 2016 by Garg and Chaitanya Ramalingegowda, Wakefit sells mattresses, pillows, bed frames, mattress protector, comforter, 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 its omni-channel expansion plans, boost supply chain and logistics management, technological enhancement and for marketing.
“The company is currently clocking annualised revenue run rate of Rs 700 crore, almost double of what it earned in the last financial year,” said Ramalingegowda, cofounder and director, Wakefit. For financial year ending March 31, 2021, the company had revenues of Rs 416 crore.
Furniture currently brings in about 20% 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% of the revenues over the next few months,” he added.
