Venture capital firm Sequoia Capital has invested Rs 65 crore in Wakefit which manufactures mattresses, at a post-money valuation of Rs 210 crore. Through this round, Sequoia Capital has picked up 31.9% stake in the previously bootstrapped startup.
The startup will leverage 10-15% of the acquired funds primarily to strengthen its manufacturing arm by introducing automation and boosting its production capacity from 250 mattresses per day to 700 mattresses per day and also plans to invest in innovation and launch newer product ranges,including bed sheets fabricated with wood pulp fibers, comforters, pillows, and sleepwear.
“Wakefit has been at the forefront of high quality sleep solutions since 2015, democratizing great sleep and changing the way India sleeps. We are very keen to initiate the next leg of our journey backed by the support from the prestigious venture capital firm Sequoia Capital,” said ChaitanyaRamalingegowda, co-founder,Wakefit.
Founded in 2015, it became profitable in July 2016 within 6 months of initiating operations. During the financial year 2017-18, its revenue stood at Rs 27.6 crore and net profit at Rs2.2 crore, a significant increase from Rs 6.7 crore and Rs 36 lakh in 2016-17.