Sleep and home solutions company, Wakefit.co, on Tuesday said that it has raised ₹185 crores as a part of its Series B funding round led by European investment firm, Verlinvest. The round also saw participation from existing investor, Sequoia Capital India.
With the new fund raise the company will look at accelerating its growth as it looks to expand its product portfolio in home furnishings, and achieve revenue worth ₹1000 crores by 2023-fiscal.
After setting up factories in Pune, Delhi, Jodhpur, Hyderabad and Bengaluru, the company will also look to double down on reaching Indians in Tier 2 and 3 markets. The company is also expected to make capital investments in machinery, manpower addition and setting up new factories.
As a part of this expansion, Wakefit.co will also set up new experience centers in a few cities as a pilot. Over the past months, the company has expanded into home solutions and now offers furniture such as beds, sofas, wardrobes, coffee tables and other furnishing.
As part of the funding round, the company has also instituted an Employee Stock Ownership Plan (ESOP) buyback worth ₹15 crores for the benefit of its early employees. The company will also add another 40-50 employees into the ESOP pool.
“The past year has been an exceptional one for us, with customer demand evolving and growing in a completely upturned lifestyle. In order to create rapid growth opportunities in this landscape, we raised Series B funding to bolster key functions such as R&D, logistics, operations, technology and marketing. We are happy to partner with Verlinvest, which has previously invested in top unicorns in India,” said Chaitanya Ramalingegowda, director and co-founder of Wakefit.co.
According to the company, it has been profitable since inception with its revenue growing from ₹80 crore in 2018-19 fiscal to ₹199 crore in 2019-20 fiscal, as per audited financial statements.
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