Online mattress start-up Wakefit is pushing for aggressive growth with an eye on achieving ₹260 in revenue in FY20. The start-up expects to end this fiscal with ₹80 crore in revenue and ₹8 crore in net profit, up from ₹27.6 crore revenue and ₹2.2 crore net profit in fiscal 2018.
The three year old start-up that turned profitable within six months of shipping to customers, plans to add add 50 people to its team by the year end. Flush with funds after its recent fund raise of ₹65 crore from Sequoia Capital, Wakefit which sells 8,000 mattresses a day, is doubling its production capacity from 250 mattresses a day to 500 mattresses by April and expanding its warehouse network from four, located in Bengaluru, Pune, Mumbai and Hyderabad to seven by the end of 2019.
“An all India survey we conducted last year revealed that 21 per cent of people sleep well after midnight and 59 per cent sleep after 11pm, while it is recommended that regular sleeping time is around 10pm – 10.30pm for restful sleep in alignment with our circadian rhythms. Unfortunately people know the effects of inadequate sleep but are not serious about taking steps to ensure they sleep well. We address common problems like back aches, blood pressure and mental recovery from stress with our products” Ankit Garg, co-founder and CEO, Wakefit Innovations Pvt Ltd told BusinessLine.
The start-up offers two kinds of mattresses (normal foam & memory foam) at prices ranging from ₹5,000 to ₹26,000 and also sells pillows, mattress protectors and solid wood beds. Aligning with its vision to be synonymous with sleep solutions, the start-up is launching a range of bedsheets and comforters, with many more products launches on the anvil.
“We incorporate new features into our mattresses regularly and come out with new versions every quarter. We have effected 15 improvements to date and our product acceptance rate has improved from 95 per cent to 97 per cent today” said Chaitanya Ramalingegowda, co-founder, Wakefit. Nearly 40 per cent of Wakefit’s sales comes from Amazon, Flipkart and Pepperfry. Bengaluru, Mumbai and Hyderabad are its top three markets and 75 per cent of its sales comes from the top 10 cities.
Besides competing with mattress giants like Kurlon, Peps, Nilkamal and Duroflex, Wakefit is also up against mattress firms including Sunday, Nubliss, House of Bed, Mattress Box and SleepyCat. The $3 billion Indian mattress market, of which 30 per cent is organised, is growing at 10-15 per cent annually fuelled by urbanisation, rising disposable incomes and health issues.
Source: The Hindu