New Delhi, Aug. 6 -- The Sleep Company, backed by investors such as PremjiInvest and Fireside Ventures, has raised Rs 480 crore ($54.7 million) in a Series D funding round led by homegrown private equity firm ChrysCapital and wealth and asset management company 360 ONE Asset.
Founded by husband-wife duo of Priyanka and Harshil Salot, The Sleep Company offers sleep and sitting solutions, including mattresses, office pillows, chairs, comforters, protectors, and recliners. Initially an online-first brand, it entered offline retail in June 2022 and has since expanded to over 150 stores across the country.
The funding, an equal mix of primary and secondary components, saw consumer-focused early-stage venture capital firm Fireside Ventures take a partial exit, according to a person familiar with the matter.
VCCircle had first reported on the development in April.
Investment bank Avendus Capital acted as the exclusive financial advisor to The Sleep Company on the transaction.
Commenting on the development, Rajiv Batra, director and consumer sector lead at ChrysCapital, said, "This investment represents a compelling opportunity to participate in India's broader premiumization wave-where consumers are increasingly gravitating towards high-quality, science-led, and design-first products that enhance everyday living."
Mumbai-based The Sleep Company said it will use the funds for capital expenditure, including setting up manufacturing facilities and further expanding its offline presence, especially in metro and tier I cities. The company also plans to launch new product categories, invest in R&D and product innovation, and strengthen core teams across product, technology, design, and retail operations.
"This fundraise powers the next phase of our journey to lead the comfort-tech revolution in India. We're scaling faster, opening more stores to be where our customers are, expanding capacity to meet growing demand, and doubling down on innovation to launch products that truly transform the way India sits and sleeps," said co-founders Priyanka and Harshil Salot.
"Our focus is clear: strengthen our presence in metro and tier I cities, deepen our reach in tier II markets, invest further in R&D, and expand into new categories aligned with our long-term vision. This sets us up for the next three years-to scale with intent, grow sustainably, and move closer to our goal of becoming a cash-positive, innovation-first business," they added.
The latest funding round comes over 18 months after The Sleep Company's previous capital raise in December 2023, when it secured Rs 184 crore (about $22 million) in a Series C round led by PremjiInvest and Fireside Ventures.
The two investors had also backed the company in a Series B round in November 2022 when it pocketed Rs 177 crore. Alteria Capital also participated via venture debt.
Earlier, in July 2021, the company secured Rs 13.4 crore in a Series A round led by Fireside Ventures.
The Sleep Company said it recorded 60% year-on-year growth in FY25. According to estimates, this would put its operating revenue in the Rs 500-crore range for the year.
In FY24, it had recorded Rs 312 crore in net sales, a 2.5x growth from Rs 127 crore the year before.
Further, the company said it has crossed an annual revenue run rate (ARR) of Rs 700 crore and grown its team size from 650 to over 1,500 employees.
In an earlier interaction with VCCircle, Harshil Salot said the company is targeting around Rs 1,000 crore in revenue over the next two-three years, after which it plans to tap the public markets.
Published by HT Digital Content Services with permission from VC Circle.