Home solution startup Wakefit raised $28 million in investment
The new fund will be used for omnichannel expansion goals
Wakefit, the startup that provides sleep and home solutions, has secured Rs 200 crore ($28 million) in a fundraising round led by US-based SIG, with participation from existing investors Sequoia Capital India and Verlinvest.
Wakefit intends to use the additional capital to finance its omni-channel expansion goals, as well as to strengthen its supply chain, technology development, and marketing. The company also aims to enter the home interiors market. The startup was valued at $375 million in the Series C investment.
Wakefit initially started as an online mattress retailer selling end-users in 2015 but has since grown its portfolio to include sleep accessories such as back pillows, neck support pillows, and comforters. Wakefit manufactures in Delhi, Bengaluru, and Jodhpur and distributes the products through its web platform as well as other markets.
In December of last year, the startup secured Rs 185 crore ($25 million) in a Series B investment led by Verlinvest and Sequoia Capital India. Before that, in December 2018, it raised Rs 65 crore in its first institutional round from Sequoia Capital.
The D2C startup, which claims to be profitable after six months of operation, had claimed revenue of Rs 410 crore in FY21. Despite more than doubling its scale in FY20, the company’s profits increased by 56.6 percent to Rs 10.15 crore from Rs 6.65 crore in FY19. In FY20, the sale of products such as beds and pillows accounted for approximately 95% of its income. From Rs 72.95 crore in FY19 to Rs 187.2 crore in FY20, such sales increased by 2.6X to Rs 187.2 crore. The corporation has yet to file its FY21 annual financial statements.