Wakefit, an online company that sells mattresses is in advanced talks with three venture capital funds for the purpose of securing about Rs 40 crore ($6 million). The funding will be led by Sequoia Capital.
If the funding is implemented, it will be Wakefit’s first external round of investment. The company was inaugurated in 2016 by Ankit Garg and Chaitanya Ramalingegowda.
The large part of funds so raised is expected to be used towards the expansion of the product portfolio. Wakefit is planning to offer beds/cots, neck pillows and a limited range of nightwear, driven by research to induce sleep faster for the wearer.
“Our mattress is currently in its 11th iteration, which we continuously change after feedback from customers. Since we started in 2016, we have sold over 1.25 lakh units and are currently at a daily run rate of 500 units of sale,” said Ankit Garg, CEO of Wakefit.
The company positions itself as a sleep solutions startup. It is growing its product line to include pregnancy pillows and fitted bedsheets. However, the founders have refused to comment on the fundraising matter.
Talking about the other players in this segment, the startup competes with Sleepwell, Kurlon, Godrej Interio and Springwel. Wakefit is India’s sole online-only mattress brand. Ita products are available on Amazon, Flipkart and Pepperfry, apart from its own website, which accounts for about 50% of its sales.
The company claims to be profitable. Its revenue in fiscal 2018 crossed Rs 30 crore. The company stated that it is looking forward to end fiscal 2019 with revenue growth of over 2.5 times.
Apart from this, Wakefit is also expanding its manufacturing facility in Bengaluru and warehousing capacity in Mumbai and Hyderabad.