Mattress startup Wakefit raises ₹65 crore from Sequoia
Mattress startup Wakefit, Bengaluru-based mattress manufacturing startup Wakefit has raised ₹65 crore in its first institutional round from Sequoia Capital at a post-money valuation of ₹210 crore. Following the investment, Sequoia will pick up a 31.9% stake in the startup. Founded by Ankit Garg and Chaitanya Ramalingegowda, Wakefit researches on sleep and spine support to create orthopaedic mattresses and pillows.
The investment by Sequoia puts the company’s valuation at about ₹200 crore. In financial year 2017-18, Wakefit’s revenue stood at ₹27.6 crore and net profit at ₹2.2 crore, up from ₹6.7 crore and ₹ 36 lakh the previous year. The company turned profitable in July 2016, just six months after it started shipping to customers. Confirming the development, Ankit Garg told BusinessLine that 10-15 per cent of the funds will be invested to automate manufacturing to increase the production capacity from 250 mattresses per day to 700 mattresses per day.
New products such as bedsheets made out of wood pulp thread,comforters, pillows and sleepwear will also be launched. “The bulk of the funding will go into educating customers on what it takes to get a good night’s sleep, which is very important. Today, visitors to our site spend at least 5 minutes browsing and going through all the content on the site; we want to further improve on the amount of time they spend on our site” he said.