Comfort-Tech Leader The Sleep Company Secures Landmark Series D Funding
August 6, 2025, 9:37 pm
Location: South Africa, Gauteng, Gosforth
Employees: 201-500
Founded date: 1963
Total raised: $60M
The Sleep Company sealed a pivotal Rs 480 Cr Series D funding round. ChrysCapital and 360 ONE Asset led the investment. This significant capital influx will supercharge the comfort-tech leader's strategic growth. Plans include vast retail network expansion, new manufacturing capabilities, intense product innovation, and talent acquisition. The company, an omnichannel pioneer, aims to dominate India's burgeoning premium sleep and comfort market. It leverages patented SmartGRID technology, targets sustained profitability, and eyes a future public listing, solidifying its industry leadership amid fierce competition and a national premiumization trend. Partial investor exit occurred.
India's comfort-tech landscape witnesses a major infusion of capital. The Sleep Company, a prominent innovator in sleep and sitting solutions, recently announced a substantial Series D funding round. This pivotal investment totaled Rs 480 crore, equivalent to approximately $54.7 million. Key investors ChrysCapital and 360 ONE Asset spearheaded this significant financing. The round comprised a strategic mix of both primary and secondary capital. This structure facilitated a partial exit for Fireside Ventures, an early and impactful backer of The Sleep Company.
The Mumbai-based enterprise, founded in 2019 by Priyanka and Harshil Salot, has rapidly carved a niche. It offers a diverse portfolio of sleep and seating solutions. These include mattresses, pillows, bedding, office chairs, recliners, and various comfort-enhancing products. A core differentiator is its proprietary SmartGRID® technology. This innovation underpins its product range, delivering unique comfort and support.
This new capital fuels an ambitious expansion strategy. The Sleep Company plans aggressive growth across multiple fronts. A significant portion targets capital expenditure. This includes establishing new manufacturing facilities. Enhanced production capacity will meet soaring consumer demand. The company also commits to substantial retail expansion. It currently operates over 150 exclusive brand outlets nationwide. Plans call for adding 130-150 new stores over the next two years. This will deepen its reach across India's metro and Tier 1 cities. Expansion into Tier 2 markets is also on the agenda.
Beyond physical presence, innovation remains paramount. The funding will accelerate investment in research and development. New product categories will launch. Existing SmartGRID technology will see further evolution and application across its offerings. Strengthening core teams is another priority. This involves strategic hiring across product development, technology, design, and retail operations. Building a robust talent base supports sustained growth and operational excellence.
The Sleep Company demonstrates impressive financial traction. The firm reports crossing an annual revenue run rate (ARR) of Rs 700 crore. Some reports indicate an ARR of Rs 750 crore. It achieved 60% year-on-year growth in FY25. For the fiscal year 2024, net sales stood at approximately Rs 312-320 crore. This represented a substantial 2.5x increase from the previous year. While recording a net loss in FY24, the company achieved profitability at an EBITDA level in the last quarter. This indicates a positive trajectory towards financial self-sufficiency. Management projects reaching Rs 1,000 crore in revenue within the next two to three years. A public listing is a long-term goal following this revenue milestone. The company aims for a cash-positive, innovation-first business model.
The comfort-tech market in India is dynamic and competitive. The Sleep Company operates alongside significant players. Competitors include IPO-bound Wakefit.co and Duroflex's Sleepyhead. Legacy brands also vie for market share, such as Sheela Foam, which owns Sleepwell. The funding signals a maturing domestic sleep and home furnishing industry. Rival IPO plans underscore this industry evolution. Such moves boost category awareness, benefiting all participants. The Sleep Company views market consolidation as an ongoing trend. It actively evaluates potential acquisition targets.
This investment aligns with India's broader premiumization wave. Consumers increasingly seek high-quality, science-led, and design-first products. These offerings enhance daily living. The Sleep Company's focus on innovative, comfortable solutions positions it perfectly within this trend. Its omnichannel strategy, blending digital discovery with immersive offline retail, resonates strongly with consumers. Offline channels now contribute 70% of total sales. This highlights the success of its physical expansion. Online sales via its direct-to-consumer website and marketplaces like Amazon and Flipkart comprise the remainder.
The Sleep Company has a history of attracting significant investor confidence. This Series D round follows previous successful capital raises. In December 2023, it secured Rs 184 crore in a Series C round. Premji Invest and Fireside Ventures led that investment. Prior to that, a Series B round in November 2022 brought in Rs 177 crore. Premji Invest again led, with Fireside also participating. Alteria Capital provided venture debt in that round. In July 2021, the company closed a Rs 13.4 crore Series A round, led by Fireside Ventures. This consistent fundraising reflects strong investor belief in its business model and growth potential.
The company's employee base has also seen rapid growth. It doubled its staff since its last fundraise. The Sleep Company now employs around 1,500 people. This expansion supports its ambitious operational and retail plans. While currently focused on India, international expansion remains part of its long-term strategic vision. This latest funding empowers The Sleep Company to solidify its market leadership. It accelerates its journey to become a dominant force in India's comfort and wellness landscape. The future holds significant growth for this innovative comfort-tech enterprise.
India's comfort-tech landscape witnesses a major infusion of capital. The Sleep Company, a prominent innovator in sleep and sitting solutions, recently announced a substantial Series D funding round. This pivotal investment totaled Rs 480 crore, equivalent to approximately $54.7 million. Key investors ChrysCapital and 360 ONE Asset spearheaded this significant financing. The round comprised a strategic mix of both primary and secondary capital. This structure facilitated a partial exit for Fireside Ventures, an early and impactful backer of The Sleep Company.
The Mumbai-based enterprise, founded in 2019 by Priyanka and Harshil Salot, has rapidly carved a niche. It offers a diverse portfolio of sleep and seating solutions. These include mattresses, pillows, bedding, office chairs, recliners, and various comfort-enhancing products. A core differentiator is its proprietary SmartGRID® technology. This innovation underpins its product range, delivering unique comfort and support.
This new capital fuels an ambitious expansion strategy. The Sleep Company plans aggressive growth across multiple fronts. A significant portion targets capital expenditure. This includes establishing new manufacturing facilities. Enhanced production capacity will meet soaring consumer demand. The company also commits to substantial retail expansion. It currently operates over 150 exclusive brand outlets nationwide. Plans call for adding 130-150 new stores over the next two years. This will deepen its reach across India's metro and Tier 1 cities. Expansion into Tier 2 markets is also on the agenda.
Beyond physical presence, innovation remains paramount. The funding will accelerate investment in research and development. New product categories will launch. Existing SmartGRID technology will see further evolution and application across its offerings. Strengthening core teams is another priority. This involves strategic hiring across product development, technology, design, and retail operations. Building a robust talent base supports sustained growth and operational excellence.
The Sleep Company demonstrates impressive financial traction. The firm reports crossing an annual revenue run rate (ARR) of Rs 700 crore. Some reports indicate an ARR of Rs 750 crore. It achieved 60% year-on-year growth in FY25. For the fiscal year 2024, net sales stood at approximately Rs 312-320 crore. This represented a substantial 2.5x increase from the previous year. While recording a net loss in FY24, the company achieved profitability at an EBITDA level in the last quarter. This indicates a positive trajectory towards financial self-sufficiency. Management projects reaching Rs 1,000 crore in revenue within the next two to three years. A public listing is a long-term goal following this revenue milestone. The company aims for a cash-positive, innovation-first business model.
The comfort-tech market in India is dynamic and competitive. The Sleep Company operates alongside significant players. Competitors include IPO-bound Wakefit.co and Duroflex's Sleepyhead. Legacy brands also vie for market share, such as Sheela Foam, which owns Sleepwell. The funding signals a maturing domestic sleep and home furnishing industry. Rival IPO plans underscore this industry evolution. Such moves boost category awareness, benefiting all participants. The Sleep Company views market consolidation as an ongoing trend. It actively evaluates potential acquisition targets.
This investment aligns with India's broader premiumization wave. Consumers increasingly seek high-quality, science-led, and design-first products. These offerings enhance daily living. The Sleep Company's focus on innovative, comfortable solutions positions it perfectly within this trend. Its omnichannel strategy, blending digital discovery with immersive offline retail, resonates strongly with consumers. Offline channels now contribute 70% of total sales. This highlights the success of its physical expansion. Online sales via its direct-to-consumer website and marketplaces like Amazon and Flipkart comprise the remainder.
The Sleep Company has a history of attracting significant investor confidence. This Series D round follows previous successful capital raises. In December 2023, it secured Rs 184 crore in a Series C round. Premji Invest and Fireside Ventures led that investment. Prior to that, a Series B round in November 2022 brought in Rs 177 crore. Premji Invest again led, with Fireside also participating. Alteria Capital provided venture debt in that round. In July 2021, the company closed a Rs 13.4 crore Series A round, led by Fireside Ventures. This consistent fundraising reflects strong investor belief in its business model and growth potential.
The company's employee base has also seen rapid growth. It doubled its staff since its last fundraise. The Sleep Company now employs around 1,500 people. This expansion supports its ambitious operational and retail plans. While currently focused on India, international expansion remains part of its long-term strategic vision. This latest funding empowers The Sleep Company to solidify its market leadership. It accelerates its journey to become a dominant force in India's comfort and wellness landscape. The future holds significant growth for this innovative comfort-tech enterprise.