Sleep and home solutions company Wakefit.co has raised Rs 185 crore in Series B funding, led by European investment firm Verlinvest and Sequoia Capital India, which first invested in 2018 in its Series A round.
Its valuation has jumped to Rs 1,900 crore from Rs 210 crore in December 2018, when the startup raised Rs 65 crore from Sequoia Capital.
As part of the funding round, the company has also instituted an Employee Stock Ownership Plan (Esop) buyback worth Rs 15 crore for the benefit of early employees. It will also add another 40-50 employees to its Esop pool.
“The latest round of funding will be deployed to accelerate the company’s strategic expansion to newer markets, foster product innovation and leverage technology to deepen its consumer first-approach,” Ankit Garg, co-founder and CEO, said.
Following this round, the founders will continue to hold more than 50% stake and around 6-7% will be held by employees under the Esop scheme, said Chaitanya Ramalingegowda, director and co-founder of Wakefit.co. Sequoia will continue to hold 31.9% with the remaining being held by Verlinvest, he added.
Founded in 2015, the company became profitable by July 2016, within six months of initiating operations.
The Series B round sets it on course to accelerate growth, with revenue targets of Rs 1,000 crore by FY23, the company said.
After setting up factories in Pune, Delhi, Jodhpur, Hyderabad and Bengaluru to strengthen logistics and bolster customer experience, Wakefit.co will now look to double down on reaching Indians in Tier II and Tier III markets.
The company’s revenues grew to around Rs 199 crore in FY20 from around Rs 80 crore in FY19, as per audited financial statements. It is expected to clock Rs 400 – Rs 500 crore in revenue in the ongoing fiscal year.
“We now live in very interesting times in which consumer preferences and online penetration are changing rapidly and believe Wakefit has great momentum to delight Indian consumers with great quality, value for money products delivered alongside great customer experience,” said Arjun Anand, executive director at Verlinvest.
Verlinvest has over 1.6 billion euros worth of assets under management and its Indian portfolio includes brands such as Byju’s, Sula Vineyards, Epigamia, Veeba Foods, Purplle.com and Future Consumer Ltd.
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