Bengaluru: Sequoia Capital invested ₹ 65 crore in mattresses and sleep-products company Wakefit in exchange for 31.9% equity. With that investment, the previously bootstrapped start-up’s valuation now stands at over ₹ 210 crore, Wakefit said in a statement on Tuesday.
The start-up will leverage 10-15% of the capital from its first funding round mainly to boost its manufacturing capacity to 700 mattresses per day from 250 mattresses per day, and bring automation to its manufacturing processes. Wakefit also plans to launch newer product ranges - including bedsheets with wood pulp fibres, comforters, pillows and sleepwear – and invest further in innovation.
“We are excited about partnering with a storied investor such as Sequoia Capital in our journey of building this unique start-up. The funds will be deployed in strengthening our manufacturing and fulfillment capabilities across the country, brand building, and hiring the right talent," said Ankit Garg, co-founder and chief executive officer of Wakefit.
Wakefit was founded in 2015 and, according to the company, turned profitable within 6 months of initiating operations. It earned ₹ 27.6 crore in revenue in 2017-18 and raked in profits of ₹ 2.2 crore during the same period. In 2016-17, its revenue stood at ₹ 6.7 crore while profits were at ₹ 36 lakh. The company has grown 3.5 times in FY17 and is on track to grow by 3 times in FY18, it said.
Apart from beefing up its manufacturing capacity, a major share of the funds raised by Wakefit will also be directed towards educating customers on the role a quality mattress plays in terms of health and wellbeing. To this effect, it already offers features like a 20-year warranty and a 100-day risk-free trial.
“Wakefit has been at the forefront of high quality sleep solutions since 2015, democratizing great sleep and changing the way India sleeps," said Chaitanya Ramalingegowda, Wakefit’s co-founder. Going ahead, the start-up also plans to go deeper into tier-2 cities while targeting affordable price points.