Direct-to-consumer (D2C) mattress brand The Sleep Company plans to launch more than 25 stores in the next six months across Karnataka, Maharashtra, Kerala, Chennai, Gurugram, Hyderabad, and the Eastern regions of India, Priyanka Salot, co-founder, The Sleep Company, told BrandWagon Online. The company opened its first experience store in Bengaluru last week. “We expect offline business to account for around 30-35% of the overall business in the next two years,” she added. The company aims to clock net revenue of Rs 200 crore in FY23, this is a 244% increase from Rs 58 crore in FY22. However, the company declined to comment on the net profit or loss in FY23.
Comfort Grid Technologies Private Limited, the parent company of The Sleep Company, posted net revenue of Rs 11.7 crore in FY21, while its net profit stood at about Rs 86.6 lakh, according to the regulatory filings accessed by business intelligence firm, Tofler. The company is targeting a net revenue of Rs 500 crore and aims to double its market share to 20 percent by FY24.
The company also aims to expand its international presence by foraying into European markets this fiscal. As of now, The Sleep Company claims to have a presence in the United Arab Emirates (UAE) and Japan. “With changing lifestyles, sleep disorders are on the rise globally. Therefore, we will continue to expand our international presence. By the end of this fiscal, around 10% of our business should come from international markets,” Salot explained.
The company recently received funds worth Rs 13.4 crore in a pre-series A round led by Fireside Ventures as well as participation from LogX Ventures and Varun Alagh, co-founder, Mamaearth.
Salot stated that the company is in advanced talks to raise the next round of funding, the details of which will be revealed over the next two-three months. “With this round, we will focus on three key areas. One will be to expand our offline presence and make the reach much deeper. Second, we will expand our international presence as we have already filed for a patent in more than 20 countries. And third, we aim to grow our market share,” she explained. The company claims that tier 2 and tier 3 cities account for 45% of the overall business today.
In line with its expansion strategies, the company also claims to have increased its focus on marketing as it plans to spend Rs 40 crore in FY23 compared to about Rs 11.6 crore in FY22. Typically, The Sleep Company claims to spend 20-22 percent of its revenue on marketing. “70% of the spends this year has been directed towards digital while 30% on traditional media such as TV, print, among others. As for digital, Google, social media, Amazon and Flipkart are the key platforms,” Salot explained. In the last fiscal, the company had directed the entire marketing spend on digital platforms.