Wakefit. co, the sleep and home solutions company, said on Tuesday that as part of its Series B funding round led by European investment firm Verlinvest, it has raised around 185 crores. A current investor, Sequoia Capital India, also participated in the round.
The company will look at accelerating its growth with the new fundraise as it aims to broaden its home furnishing product range and achieve revenue worth ~ 1000 crores by 2023-fiscal.
The company will also look to double down on hitting Indians in Tier 2 and 3 markets after setting up factories in Pune, Delhi, Jodhpur, Hyderabad and Bengaluru. It is also predicted that the firm will make capital investments in equipment, add manpower and set up new factories.
Wakefit. co will also set up new experience centres in a few cities as part of this expansion as a pilot. The business has grown into home solutions over the past few months and now sells furniture such as beds, sofas, wardrobes, dining tables and other furniture.
The organisation has also implemented an Employee Stock Ownership Plan (ESOP) buyback worth ~15 crores for the benefit of its early employees as part of the funding round. Another 40-50 jobs would also be added to the ESOP pool by the company.
With consumer demand changing and rising in a fully upturned lifestyle, the past year has been an exceptional one for us. We raised Series B funding to support key functions such as R&D, logistics, operations, technology and marketing to build rapid growth opportunities in this landscape. We are pleased to partner with Verlinvest, which has previously invested in India’s top unicorns,’ said Chaitanya Ramalingegowda, Wakefit. co’s director and co-founder.
It has been profitable since its inception, according to the company, with its revenue rising from ⁇ 80 crores in fiscal 2018-19 to ⁇ 199 crores in fiscal 2019-20, according to audited financial statements.
Also, almost 30-35 percent of Wakefit. co’s demand comes from tier 2 and tier 3 markets. The company’s goal for the fiscal year ending March 2021 is to drive 50 percent demand from lower and meet an overall revenue target of Rs 450 crores. According to the company since its inception, it has been profitable with its revenue rising from Rs 80 crores in fiscal 2018-19 to Rs 199 crores in fiscal 2019-20, according to audited financial statements.
Wakefit. co will also aim to expand its workforce from 600 by March next year from earlier this year to 3000 employees. Machine technicians, carpenters and executives with consumer expertise would be a significant part of this workforce.
“The home solutions segment in India is largely unorganised with a broken customer experience thereby providing the immense potential for disruption. Current tailwinds have created a systemic shift towards online shopping which offers potential for a digital-first player like Wakefit. co to organise the market,” said Manvitha Janagam, investment professional, Verlinvest.