Mattress and furniture online retailer, Wakefit announced on November 11 that it has raised Rs 200 crore driven by Susquehanna International Group – an investor in companies such as ByteDance and Mobile Premier League.
The round, in which current financers – Sequoia India and Verlinest – also joined, valued Wakefit at Rs 2,800 crore compared to Rs 1,900 crore in December 2020.
Established by Ankit Garg and Chaitanya Ramalingegowda, Wakefit was initially only selling mattresses, but later extended into furniture as well. The division already accounts for more than 15 percent of its revenue in less than two years. In October, it sold more than 1 lakh mattresses and is on track to make Rs 700 crore in revenue in FY22.
“The infusion comes at a strategic point in time for us as we drill down on large-scale expansion across the country. As the number one sleep player in India (online), we are aiming to replicate our success in the home and furnishings space too. The Series C round will help us broaden our category offerings, as well as create avenues for deeper geographical penetration,” co-founder and CEO Garg said.
Wakefit will use the money to set up offline experience centres and manage logistics, supply chain and increase marketing besides hiring across levels.
It will increase its product line to include lighting, decor, furnishings, and set up state-of-the-art factories and warehouses.
Wakefit is flourishing at a time when most online brands are viewing their customer acquisition costs shoot up due to increasing competition and social media advertising rates going up.
Wakefit’s funding is the newest example of the funding boom at large but more particularly for digital-first consumer brands, or so-called D2C (direct to consumer) brands, which sell through their own websites and apps and online marketplaces such as Flipkart and Amazon. An Avendus report last year calculated the India D2C opportunity to be $100 billion in the next 5-7 years.