The Sleep Company Reaches 500 Cr Annual Recurring Revenue Milestone

The Sleep Company (TSC), India’s leading comfort-tech brand, is eyeing to achieve profitability by the end of FY25. In just 4.5 years since its inception, the company has touched a significant milestone of achieving INR 500 crore ARR (Annual Recurring Revenue). Embarking upon one of its biggest milestones till date, the company has disrupted traditional mattress industry and proved to have a first-mover advantage with its 100 COCO (Company-owned, Company-operated) stores. It is India's fastest D2C brand to achieve this feat in just two years since entering the offline retail space. The company opened its first store in Bengaluru in June 2022.

Founded in 2019 by Priyanka and Harshil Salot, TSC is the world's first and only provider of SmartGRID technology, revolutionizing sleep and sitting solutions. As one of the country’s fastest growing brands, it is at the forefront of reshaping both the D2C as well as the omnichannel landscape in the mattress industry. The company offers a host of products including mattresses, sofa, pillows, cushions, bedding, office chairs, smart recliner bed etc.

The company’s operating revenue surpassed INR 127.14 crore in FY23, witnessing a significant jump from INR 74.05 lakh in FY20. The Sleep Company is well-positioned to reach the INR 1000 crore revenue mark in the next 2-3 years. This smart goal is leadership’s strategic vision and will be driven by a comprehensive growth strategy, with expansion plans across India. As it looks to solidify its market position and omnichannel presence, The Sleep Company will strengthen its workforce, from current 1000 headcount to 1300-1400 employees by the end of 2024.

The Sleep Company Cofounder Priyanka Salot said, “This rapid growth and expansion is attributed to a combination of innovative products, expansion of our omnichannel presence and our unwavering commitment to customer satisfaction. Innovation remains at the core of our growth strategy and our patented SmartGRID technology is what gives us a competitive edge and makes us stand out in the industry. We are now looking to enhance our position as a ‘House of Brands’ and expand our product line while setting new standards in the industry.  The integration of AI into our future products will help us further enhance customer experience. We are extremely grateful to our people, customers and investors for being a part of this growth journey and we remain committed to improving the lives of individuals with our sleep and sitting solutions.”

Harshil Salot, Cofounder, The Sleep Company said, “The mattress industry was highly fragmented and unorganized, dominated by distributors and dealers when we launched TSC in 2019. We believe that our omnichannel presence has disrupted the space. After analyzing consumer behavior, we have internally coined the ‘ROPO’ term, ‘Research Online, Purchase Offline’ wherein consumers research about our products online and then experience the product in the store and make a purchase. Our COCO stores make us stand out in the market as it helps us to provide superior experience to our customers, ensure seamless delivery and address their queries and challenges first-hand. We are extremely excited to reach this significant milestone of having 100 stores in India and we remain steadfast in our dedication to pushing the boundaries of comfort and productivity with deeper market penetration.”

The company has two manufacturing sites, one each in Mumbai and Bengaluru. Since December 2022, it has opened one store every 4-5 days, and all of TSC stores have been EBITDA profitable since the beginning of its operations.

The company drives 85% of its sales from its omni-channel presence, including retail stores and online through its website. The company has the largest market share for office chairs in India, having witnessed a remarkable 10X growth since the inception of its chair category. It is looking to double market share in the next 24 months with the recent launch of its chair brand, ‘ErgoSmart by The Sleep Company’.

TSC has so far raised INR 184 cr in a Series C funding round from Premji Invest and Fireside Ventures in December 2023, INR 177 cr in a Series B funding round led by Premji Invest, Fireside Ventures, and Alteria Capital, and INR 13.4 cr in a pre-Series A funding round.