The Sleep Company Raises New Series B Funding

Credit: 123RF.com

The Sleep Company, an online mattress retailer, has received Series B funding of ₹177 crore from Premji Invest and Fireside Ventures. The latest round also saw participation from venture debt fund Alteria Capital.

Founded by Priyanka Salot and Harshil Salot, The Sleep Company, owned by Comfort Grid Technologies Pvt. Ltd, has so far raised ₹190.4 crore in funds. It raised ₹13.4 crore in a pre-Series A round led by Fireside Ventures in July last year.

The first round also saw participation from LogX Ventures (pre-Series A) and Varun Alagh, co-founder of Mamaearth (pre-Series A).

The Sleep Company sells a range of products including mattresses, pillows, cushions, as well as beds and chairs. In mattresses, the company competes with Sleepwell, Springwel, Duroflex, Kurl-on and Coirfit. Among online brands, its rivals include around half a dozen companies like Wakefit, SleepyCat, Sleepyhead and SleepX. The company said it patented a “SmartGrid” technology that, unlike memory foam, provides support to the “right parts of the body” without using springs or latex.

“Our investment is part of our broader thesis that India is becoming more online, premiumization and rising demand from tier one cities. As per capita income rises, we are seeing increased demand in all consumer categories, including comfort,” said a Premji Invest spokesperson.

Dipanjan Basu, partner at Fireside Ventures, said, “Sleep is becoming an important category in the overall wellness space. We are now seeing sleep technology emerging as a fast growing ecosystem both in India and globally. We have seen their business grow rapidly over the past year. They have an omnichannel market strategy, and we’re excited to double down on our investment and participate in the current cycle. »

Harshil Salot said the company would deploy the capital to add 22 offline stores to the existing three by March and expand the employee base. The company, he said, also sold in Japan, the UK and the United Arab Emirates.

“There are all kinds of players in this market, like legacy brands, which are mostly offline brands, as well as new-age brands. A lot of the industry uses memory foam and We broke the mess by patenting our product technology.While the business started digitally, within three years we started growing offline and have three stores in Mumbai, Hyderabad and Bangalore. The idea will be to own and operate our own stores as third-party commissions in this space are very high,” said co-founder Priyanka Salot.

“We have seen a huge shift in consumption over the past two to three years. It has a lot to do with people being home during covid. People have become very health conscious and they want to spend on quality products that they believe will help them improve their health or quality of life,” she added.

According to analytics website Statista, the mattress segment revenue in India was around $223.40 million in 2022 and the market is expected to grow at 9.79% pa between 2022 and 2026). However, that’s tiny compared to the US market at $11.8 billion.

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