Company targets over INR 1200 crore in revenue by FY 24 with an eye on profitability
The funding round saw participation from all existing investors Sequoia Capital India, Verlinvest, and SIG
Wakefit.co announced its Series D round of funding of INR 320 crore (~$40 million) Investcorp, a leading manager of alternative investment products with a 40+ year track record, led the funding round. All existing investors, Sequoia Capital India, Verlinvest, SIG, also participated in a show of faith in the company’s future. IndigoEdge was the exclusive advisor for Wakefit.co on the transaction.
Wakefit.co aims to close FY 2024 at over INR 1200 crores in revenue, while also turning EBITDA positive once again after 2 years marked by intense investment building capabilities. The funding will be deployed with strong financial prudence to stay true to the company’s DNA of product innovation and customer centricity. The Series D round will enable Wakefit.co to strengthen its expansion plans across categories and bolster its omnichannel presence to reach deeper pockets of the country. In addition, these funds will boost Wakefit.co’s manufacturing and supply chain capabilities, ramp up hiring across levels, and also enhance brand building initiatives.
In CY 2022, the company launched 12 physical stores across the country, which has helped in penetrating into markets and being available closer to customer hubs in both metro and tier-2 cities. The omnichannel push will continue to be a strategic growth driver in the next 3 years, with plans to open close to a 100 stores across 20 cities. Another significant lever for Wakefit.co’s expansion has been the launch of India’s largest furniture factory in 2022, which has helped scale the furniture segment within the company. The factory has been built to meet world-class standards with cutting-edge automation and has the ability to furnish close to 1 Lakh homes per month. While the sleep segment still makes up a significant share of its business, the company’s furniture portfolio now contributes close to 25% of its revenues.
Ankit Garg, CEO and Co-Founder of Wakefit.co shared, “The Series D round comes at a vital point in our growth journey as we continue to expand our presence across India. This funding round will solidify our position in the home and sleep solutions space, and will enable us to scale up our manufacturing and supply chain capabilities. We thank our investors for their support and trust in our journey of becoming a market leader in our space.”
Chaitanya Ramalingegowda, Director and Co-Founder of Wakefit.co, said, “As we complete almost 7 years of our journey, it is gratifying to have served over 1.5 million customers and received over 5 lakh reviews on our offerings. This has attracted like-minded investors to put their faith in the company. We are delighted to partner with Investcorp, a globally recognised investor with a strong track record who believes in our vision. We are also grateful to our existing investors, who continue to support us in our journey. We will continue to work towards achieving our vision of becoming India’s most loved home and sleep solutions brand.”
Varun Laul, Partner, Investcorp PE, said, “We are excited to invest in Wakefit.co as it continues its journey towards becoming the market-leading sleep solutions and home decor omnichannel brand. The investment aligns with Investcorp’s thesis on the increasing consolidation of unorganised sectors by emerging consumer brands. We look forward to supporting Ankit and Chaitanya in profitably scaling this business and taking Wakefit.co public in the future.”
Wakefit.co clocked in a revenue of INR 636 Cr in FY 2022 recording a 54% jump since the FY 2021. In the past year, Wakefit.co has emerged as the most searched brand in the sleep and home solutions category, showcasing people’s love for the brand.
