Venture capitalist firm PremjiInvest invests in Series D round for mattress manufacturer The Sleep Company
The Sleep Company, a leading provider of sleep and sitting solutions, has secured Rs 480 crore ($55 million) in a Series D funding round, led by homegrown private equity firm ChrysCapital, with participation from 360 ONE Asset and Fireside Ventures. This investment marks a significant step forward for the company as it aims to expand its business and innovate further.
The funds raised will be primarily used for capital expenditure, including setting up manufacturing facilities, expanding offline presence, launching new product categories, investing in R&D, and strengthening core teams. Specifically, the company plans to:
- Expand offline store footprint in metros and Tier-1 cities by adding 130-150 new stores.
- Scale up manufacturing capabilities to support faster growth and product diversification.
- Invest heavily in research and development to innovate further on its SmartGRID technology, a key differentiator in its comfort-tech products.
- Boost hiring across product development and retail teams to sustain its growth trajectory.
The Sleep Company, which recently crossed a Rs 700 crore annual revenue run rate and grew 60% YoY in FY25, views this investment as central to scaling sustainably over the next three years. The company aspires to become a cash-positive and innovation-driven business with aspirations for future public listing.
In addition to this, the company is exploring acquisitions to consolidate its position in the sleep and comfort sector amid ongoing market consolidation. The funding round included a mix of primary capital to fuel growth and secondary capital facilitating partial exit for early investors like Fireside Ventures.
The Sleep Company, founded by Priyanka and Harshil Salot, offers a wide range of products, including mattresses, office pillows, chairs, comforters, protectors, and recliners. Since its inception, the company has grown its team size from 650 to over 1,500 employees.
This latest funding round comes over 18 months after The Sleep Company's previous capital raise in December 2023. In an earlier interaction, Harshil Salot stated that the company is targeting around Rs 1,000 crore in revenue over the next two-three years.
The investment bank Avendus Capital acted as the exclusive financial advisor to The Sleep Company on the transaction. The company initially operated online-first but has since expanded to over 150 stores across the country. In FY24, The Sleep Company recorded Rs 312 crore in net sales, a 2.5x growth from Rs 127 crore the year before.
After this target, The Sleep Company plans to tap the public markets. However, this article does not provide new information about the expansion of offline presence or the launch of new product categories. The article also does not provide new information about the investors PremjiInvest, Fireside Ventures, ChrysCapital, 360 One Asset, or Avendus Capital.
The funds from the Series D funding round will be allocated towards expanding offline stores, launching new product categories, boosting R&D, setting up manufacturing facilities, and strengthening core teams, showcasing The Sleep Company's emphasis on business growth and innovation. The company's ambition is to become a cash-positive and innovation-driven business in the sleep and comfort sector, with future aspirations for a public listing.
