The brand started as a digital native but has now expanded its market reach offline too with an expansive store presence across India
Bengaluru: Just selling good mattresses seems like a passe when it comes to The Sleep Company and the brand goes deeper instead. The mattresses and products by the brand are backed by the ‘SmartGRID’ technology, which in itself is the biggest disruptor for which The Sleep Company has secured a patent. The brand started as a digital native but has now expanded its market reach offline too with an expansive store presence across India.
Getting the trend on-point
The mattress industry, especially D2C, was always led by established industry leaders like Duroflex, Kurl-on, and Sleepwell. The journey of The Sleep Company started when the co-founders became new parents and were facing sleepless nights due to an uncomfortable mattress. Priyanka Salot’s quest to find an alternative led to a dead end since the Indian and Asian markets were still hung up on ‘memory foam’ mattresses which was an innovation made in the 1960s. Realizing how the mattress industry hadn’t innovated in close to 50 years, the co-founders Harshil and Priyanka Salot felt that the category needed to evolve with a solution that could elevate the sleeping experience for people everywhere and thus founded The Sleep Company in 2019.
The growing consumer consciousness is what the brand looks to appeal to through its science- backed product line. Post the pandemic, consumers are now more mindful of their health and very involved in lifestyle decisions. This is creating a big opportunity for the brand and its SmartGRID mattresses, which have proven ergonomic benefits, are being seen as an investment for an overall healthier lifestyle.
Growing with power
The brand is looking at closing this year with a revenue of Rs 200 crore which is a 244% increase from their previous year’s revenues and is positive that they will hit their targets of Rs 500 crore by FY24 and Rs 1000 crore within the next 5 years. Their road map to reaching there is multi-pronged with retail expansion within India, International markets expansion, and diversifying their product portfolio on priority.
The Sleep Company considers itself a digital-first brand and its marketing activities take the same direction. Typically, the brand spends about 20-22% of its revenue on marketing. Of the total marketing budget, approximately 70% of the spending has been directed towards digital (Google, social media, Amazon, and Flipkart are the key platforms) while 30% is on traditional media such as TV, and print, among others.
Taking the big leap
Retail Expansion has been at the forefront of The Sleep Company’s plans. They have already set up 43 experiential stores across the country. Their aim is to set up around 100 stores within this year and to establish themselves as strong players in the D2C and Mattress industry in foreign markets by the end of the year. The company’s goal is to reach Rs 1000 crore in revenue within the next five years, and it is well on its way to doing so.
As of now, The Sleep Company’s product strategy for the near future includes expanding the brand’s portfolio to also include a variety of home furnishing products while also extending the application of the SmartGRID technology to go beyond just mattresses and office chairs to include any and all seating solutions, such as vehicle seats and so on.
The brand is are already operating in Japan, UAE and UK. Additionally, it has already applied for a patent for the SmartGRID technology in over 20 countries.
Brownie Points
- The Sleep Company achieved a Rs 300 crore ARR rate as of October 2022, making them one of the top four brands on Amazon and the top-rated mattress brand in the online market. On top of that, their business expanded 10X after COVID, with them growing 4X in this year alone.
- The brand has raised Rs 177 crore in its series B round led by Premji Invest and Fireside Ventures. This round also saw participation by Alteria Capital. In 2021 the brand has also raised Rs 13.4 crore in a pre-series A round led by Fireside Ventures.
- The Sleep Company is the first D2C brand to expand into international markets within the first 2 years of its inception.
Compiled by Anurima Das for The India D2C Yearbook 2022.
