The Sleep Company raises ₹184 crore in Series C funding

livemint.com:

MUMBAI : The Sleep Company, an omnichannel leader in the comfort-tech business, has raised ₹184 crore in Series C from existing investors Premji Invest and Fireside Ventures. The company, which provides both sleep and seating technology, will use the funding to grow its offline presence, expand in other regions and widen its product basket, the founders said in an interview. This is the second funding round in 12 months from the same set of investors.

The company raised ₹174 crore in November 2022 and it has grown 2.6x in revenue since then, the founders said. Before that, it had raised ₹13.4 crore in pre-Series A. Through the current funding round, the company is also looking to buy back employee stock options to offer them some liquidity.

The company has grown its store strength to 60 across 20 cities. “Our aim is to be across 30 cities with almost 100 stores by end of the current financial year and another 100 stores by FY 2025," said Priyanka Salot, cofounder, The Sleep Company. According to her, the company’s valuation has grown two-fold since the last funding round.

With this omnichannel approach, the company now earns around 50% of its revenue from offline channels while the rest comes from online. The company has reached an annualized revenue run rate of around ₹350 crore as of September 2023 and is expected to close the current financial year at ₹500 crore in ARR, Harshil Salot, another cofounder, said. The company, co-founded in 2019 by the husband-wife team of Harshil and Priyanka Salot, achieved contributory margin profitability and is looking to achieve Ebitda (earnings before interest, taxes, depreciation and amortization) profitability by FY25.