Premji Invest is leading a $15–20 million fundraising round for The Sleep Company

 Premji Invest is leading a $15–20 million fundraising round for The Sleep Company

The fundraising effort takes place at a time when the mattress industry is becoming more competitive; Wakefit alone is expected to raise $15–20 million from Elevation Capital.

Direct mattress manufacturer to customer According to individuals who spoke with Moneycontrol, The Sleep Company is in advanced talks to secure $15–20 million in a fundraising round headed by Premji Invest and included Fireside Ventures. Among the company's investors are Premji Invest and Fireside.

The fund-raiser takes place at a time when the mattress industry is becoming more competitive. Rival Sleep Company, Wakefit, funded by Peak XV, is also in discussions to raise a comparable sum from Elevation Capital, an existing investor, in order to broaden its product offering.

According to insiders, The Sleep Company intended to expand its presence, expand into new regions, and expand its offline retail footprint with the additional capital.

According to the individuals mentioned above, investors value The Sleep Company at over $180 million, with considerable opportunity for growth. This is a substantial premium over its prior valuation of between $120-130 million.

The Azim Premji Foundation's Premji Invest (PI) division mostly funds companies in the financial services, technology, consumer, healthcare, and industrial sectors.

Conversely, Fireside Ventures makes investments in early-stage consumer companies in a variety of industries, including lifestyle, home goods, kids and education, personal care, and food and drink.

The Sleep Company got Rs 177 crore from Premji Invest and Fireside Technologies around the same time last year.

The terms of the agreement may vary since discussions are still ongoing. Moneycontrol did not get a response from the firm.

"The Sleep Company has shown strong growth and a low cash burn rate. According to one of the individuals, Moneycontrol will soon see the company's net break-even point.

According to Tracxn, a private markets data provider, the Mumbai-based firm finished FY22 with sales of Rs 56 crore, up from Rs 11.8 crore in FY21.

A profit of Rs 87 lakh was made by The Sleep Company in FY21, however in FY22, the company lost Rs 11.6 crore. The business expanded in the preceding fiscal year, and at the end of FY23, it probably brought in between Rs 150 and Rs 170 crore, but it was still losing money. The FY23 results have not yet been filed.

The Sleep Company, which was founded in 2019 by Priyanka and Harshil Salot, claims to create office chairs, pillows, mattresses, and other items using technology, science, and ergonomics. Sundayrest, Sleepyhead, and SleepyCat are its rivals. Even established players, such as Sheela Foam, have been making signings to match the current breed of athletes.