Mattresses and home furniture maker Wakefit on Friday said it has raised $40 million in a Series D round of funding, led by global alternate investment firm Investcorp, to fuel its plans to open 100 stores across 20 cities in three years.
Other existing investors, Sequoia Capital India, Verlinvest, and SIG, also participated in the latest round, the company said in a statement.
Founded by Garg and Chaitanya Ramalingegowda in 2016, Wakefit initially sold only mattresses and later expanded to the furniture space as well. The company sells its products through several e-commerce platforms, including Amazon and Flipkart. While the sleep segment still makes up a significant share of its business, the company said its furniture portfolio now contributes close to 25% of its revenues.
The firm clocked in a revenue of Rs. 636 crore in FY 2022, a 54% jump since FY 2021. It aims to close FY 2024 at over Rs 1,200 crores in revenue, while also turning EBITDA positive once again after two years.
Wakefit’s latest funding round comes over a year after it raised about $27 million in a Series C round led by SIG Global, which valued the company at about $380 million. In 2020, it had last raised Rs 185 crore as a part of its Series B funding round led by European investment firm Verlinvest. Sequoia Capital India also participated in that round.
The Series D round will enable Wakefit to strengthen its expansion plans across categories and bolster its omnichannel presence. In addition, these funds will boost Wakefit.co’s manufacturing and supply-chain capabilities, ramp up hiring across levels, and also enhance brand-building initiatives. The company said it launched 12 physical stores across the country in 2022, which has helped in penetrating into markets and being available closer to customer hubs in both metro and tier-2 cities.
Investcorp, which counts Abu Dhabi sovereign fund Mubadala Investment Co among its shareholders, began its operations in India in 2019. It has backed several Indian startups like Xpressbees, Wingreens, FreshToHome, Clove Dental, and Incred.
In an interaction with DealStreetAsia in Nov, Investcorp co-CEO Rishi Kapoor had said the firm was planning to increase its exposure to India in the next five years. The firm currently manages just over $600 million in India, which is a mere 1.5% of its $42.7 billion worth of global assets, and expects to have assets worth $5 billion in the country over the medium term, Kapoor had said.