Private investment firm PremjiInvest contributes to Series D funding for mattress company The Sleep Company
The Indian sleep solutions startup, The Sleep Company, has successfully secured Rs 480 crore ($54.7 million) in a Series D funding round, led by PremjiInvest and Fireside Ventures, who had previously backed the company in Series B and C rounds. A new investor, 360 One Asset, has also joined the roster of backers.
The investment is an equal mix of primary and secondary components, with the funds primarily earmarked for capital expenditure. The company plans to utilize these funds to set up manufacturing facilities, further expand its offline presence, particularly in metro and tier I cities, and deepen its reach in tier II markets.
The Sleep Company, which entered offline retail in June 2022, has already expanded to over 150 stores across the country. The funds will also be used to launch new product categories, invest in R&D and product innovation, and strengthen core teams across product, technology, design, and retail operations.
In the past, the company has focused on strengthening its presence in metro and tier I cities, investing further in R&D, and expanding into new categories aligned with its long-term vision. The Sleep Company offers a wide range of products, including mattresses, office pillows, chairs, comforters, protectors, recliners, and more.
The co-founders of The Sleep Company, Priyanka and Harshil Salot, stated that the fundraise will power the next phase of the company's journey to lead the comfort-tech revolution in India. The company has crossed an annual revenue run rate (ARR) of Rs 700 crore and grown its team size from 650 to over 1,500 employees. In FY24, The Sleep Company recorded Rs 312 crore in net sales, a 2.5x growth from the previous year.
Investment bank Avendus Capital acted as the exclusive financial advisor to The Sleep Company on the transaction. Fireside Ventures took a partial exit in the funding round. Alteria Capital participated via venture debt in a previous funding round.
It's worth noting that the search results do not contain specific information about how The Sleep Company has utilized recent funding rounds from investors such as PremjiInvest, Fireside Ventures, and ChrysCapital. For up-to-date, detailed information about how the funds have been allocated or exact business initiatives, it would be best to consult recent official press releases or financial disclosures from The Sleep Company or the investors mentioned.
The upcoming investment by The Sleep Company will allocate funds towards capital expenditure, focusing on setting up manufacturing facilities, expanding offline presence, and launching new product categories. This technology-driven approach in finance and investing is part of the company's efforts to strengthen its presence in various business sectors, including retail operations and R&D.
