Investcorp leads $39m Series D for India's Wakefit
Investcorp has led a INR 3.2bn (USD 39.4m) Series D round for India’s Wakefit, which claims to be the largest D2C retailer of mattresses and bedding accessories.
Existing investors Sequoia Capital India, Verlinvest, and SIG also participated. Those three investors provided a INR 2bn Series C in 2021. Sequoia and Verlinvest backed a INR 1.8bn Series B in late 2020 following a Sequoia-led INR 650m Series A in late 2018.
The latest investment gives the company a post-money valuation of INR 25bn, according to AVCJ Research. It will be used to build out omnichannel functions, enhance marketing, and scale supply chain operations.
Wakefit specialises in mattresses, bed frames, and related items such as pillows, mattress protectors, comforters, neck pillows, and back cushions. About 25% of the business is represented by other categories such dining, bedroom, and home office furniture as well as various homewares.
The company, which manufactures products in-house, brands itself as being research and innovation-driven. Last year, it claimed to launch India’s largest furniture factory with “cutting-edge” automation and the capacity to furnish almost 100,000 homes per month.
Wakefit has served about 1.5m customers since its inception in 2016. Revenue came to INR 6.4bn in the 2022 financial year, up 54% on 2021. Over the next two years, the company aims to achieve INR 12bn in annual revenue and become profitable.
Recent traction includes the opening of 12 physical stores across the country, which is said to have improved access to customer hubs in tier-one and tier-two cities. The omnichannel push will continue to be a strategic growth driver for the next three years, with plans to open about 100 stores in 20 cities.
“The investment aligns with Investcorp’s thesis on increasing the consolidation of unorganised sectors by emerging consumer brands,” Varun Laul, a partner at Investcorp, said in a statement. “We look forward to supporting [co-founders Ankit Garg and Chaitanya Ramalingegowda] in profitably scaling this business and taking WakeFit public in the future.”
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