Furniture and home improvement brand Wakefit .co has raised $40 million (Rs 320 crore) in a Series D funding round led by Investcorp. Existing investors Sequoia Capital India, Verlinvest, and SIG also participated in the round.
The direct-to-consumer (D2C) brand will use the fresh capital to expand categories and extend its omnichannel presence in Tier II and Tier III markets across the country. Wakefit.co said in a statement that it plans to expand its workforce and strengthen its supply chain.
Ankit Garg and Chaitanya Ramalingegowda founded Wakefit.co in 2016 to offer sleep solutions, including various mattresses, pillows, and bed frames. In addition, the company currently sells furniture and home improvement products, such as study tables, bookshelves, and shoe racks, manufactured in its factories in Bengaluru, Jodhpur, and Delhi.
Nearly $62 million has been raised by Wakefit.co so far (excluding Series D). In FY 2022, it reported revenue of Rs 636 crore, an increase of 54% from the year before.
The Bengaluru-based company plans to make a profit by the 2024 fiscal year and aims to generate Rs 1,200 crore in revenue over the next two years. By planning to open nearly 30 physical stores by March and another 70 by the end of FY23, it is also making a significant bet on the omnichannel sales strategy, according to CEO and Co-Founder Ankit Garg.
According to Ankit, this will improve offline store revenue from its current 10% overall sales to 40%.
“We believe offline stores are complementary to the online shopping experience. Our studies suggest that most of our customers conduct preliminary research of their desired product through our website before visiting a store,” Chaitanya, Director, and Co-founder of Wakefit.co, said.
According to the co-founders, the company is preparing to go public in the next two years and is focusing on developing a scalable and sustainable business.
However, according to Chaitanya, repeat customers account for approximately 35% of all orders at Wakefi.co, significantly reducing marketing expenses.
“This funding round will solidify our position in the home and sleep solutions space and will enable us to scale up our manufacturing and supply chain capabilities. We thank our investors for their support and trust in our journey of becoming a market leader in our space,” Ankit noted.
