Bengaluru-based direct-to-consumer home furnishing and sleep mattress maker Wakefit said Friday it has raised Rs 320 crore (just under $40 million) in its Series D round of funding led by Bahrain-based alternative investment firm Investcorp.
Existing backers Sequoia Capital India, Verlinvest and SIG also participated.
The money will be used to open more retail stores, enter new product categories, expand manufacturing and supply chain capacity, besides marketing and adding to its team.
The firm is looking to end the current financial year with revenue of around Rs 900 crore and aims to grow it by a third in the coming year.
Wakefit grew almost 50% last year to clock revenues of Rs 635 crore and is aiming to replicate the growth in the year ending March 2023.
Founded almost seven years ago by Ankit Garg and Chaitanya Ramalingegowda, the company sells products such as mattresses, pillows, bed frames, comforters, neck pillows, and back cushions besides furniture, a segment a forayed into two years ago.
Its core mattress and furnishings business is already profitable and the company is hoping to break even at the corporate level soon even as furniture as a segment will continue to absorb investment.
A year ago, it had sealed its Series C round of investment led by SIG. Previously, it had roped in Sequoia Capital India in its Series A round and raised capital from Verlinvest and Sequoia Capital India in its Series B funding.
Having started as a direct-to-consumer online label, the company has transitioned into having an omnichannel presence and last year opened over 10 stores. It is looking to ramp up its offline presence in both large and tier II cities as the average ticket size of sales from offline business is much higher and there is high conversion ratio too.
Wakefit operates in a business traditionally dominated by the likes of Sleepwell and Kurl-on, besides other D2C labels such as Sleepyhead.