Wakefit.co, a furniture and home improvement brand, has raised $40 million (Rs 320 crore) in a Series D funding round led by Investcorp. Existing investors Sequoia Capital India, Verlinvest, and SIG took part in the round as well.
The new funds will be used by the direct-to-consumer (D2C) brand to expand categories and expand its omnichannel presence in Tier II and III markets across the country. Wakefit.co also plans to strengthen its supply chain and expand its workforce, according to a statement.
Ankit Garg and Chaitanya Ramalingegowda founded Wakefit.co, the company incepted as a sleep solutions brand offering a portfolio of mattresses, pillows and bed frames among others. The company has extended its offering by a range of home improvement products and furniture items including study tables, bookshelves, and shoe racks, manufactured in its factories in Bengaluru, Jodhpur, and Delhi.7
The startup has so far raised approximately $62 million (excluding Series D). It earned Rs 636 crore in revenue in FY 2022, a 54 per cent increase over the previous year.
The Bengaluru-based company now aims to become profitable by fiscal year 2024 and to generate Rs 1,200 crore in revenue over the next two years. It is also betting big on omnichannel sales, aiming to open nearly 30 physical stores by March and another 70 by the end of FY23, according to CEO and Co-founder Ankit Garg.
According to Ankit, this will increase revenue from offline stores from 10 per cent to 40 per cent of total sales.
The co-founders also stated that the company is preparing to go public within the next two years by focusing on developing a scalable and sustainable business.
Most D2C brands spend a lot of money on marketing and advertising, which makes scaling difficult. For example, SUGAR Cosmetics’ advertising spending increased 185 per cent in FY22 compared to FY21, while meat delivery company Licious’ spending increased 70 per cent in the current fiscal year compared to the previous year.
According to Chaitanya, nearly 35 per cent of all orders at Wakefit.co come from repeat customers, which significantly reduces marketing expenses.
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