Bengaluru-based furniture and mattress brand Wakefit has raised $40 million in a funding round led by Investcorp. The company's existing investors Sequoia India, Verlinvest and Susquehanna International Group (SIG) also participated in the funding round.
Wakefit plans to use the incoming funding to enhance on its delivery operations and factory, along with expanding to tier II and III cities, economic times (ET) reported.
In 2021, Wakefit raised Rs 200 crore in its last round led by Susquehanna International Group (SIG).
"We feel we want to continue to invest in the machinery and build tech around it in 24 months,” said Ankit Garg in a media statement.
“The tech will decide on which products to prioritise based on demands that are coming in; decisions on the production floor when something has to be produced under certain costs and at a certain timeline,” he added.
Wakefit will reportedly bring customisation to its product offering using technology and machinery further making use of the incoming fund.
“So, we will build a lot of technology in the entire manufacturing and distribution supply chain. The customer would have a lot more visibility into what is happening,” Garg announced.
The Bengaluru-based direct-to-consumer (D2C) start-up also plans to expand its offline stores to more than 100 from 12. Wakefit will open the next set of stores in smaller cities like Coimbatore, Salem, Mysuru, Mangaluru, and Patna.
Founded in 2014 by Ankit Garg and Chaitanya Ramalingegowda, Wakefit initially focussed on mattresses and has now divided its business into three units - mattresses, accessories, and furniture.
The furniture business is said to be growing 3x year-on-year expecting the company to clock around Rs 220 crore in revenue from the new business this year.
Wakefit reportedly posted revenue of Rs 636 crore in the financial year 2021-22 (FY22), a 54 per cent jump from FY21.