The Sleep Company, a direct-to-consumer (D2C) startup, has raised INR 480 crore in a funding round. The money came from a mix of new shares (primary) and existing shares (secondary), with investments from ChrysCapital and 360 One Asset.
As part of the deal, early investor Fireside Ventures sold some of its shares and made a partial exit. Cofounder Harshil Salot said the funding was split equally between primary and secondary parts.
“We had Fireside Ventures, who was our earliest backer, they have taken a part exit in a secondary, and the balance is primary. The predominant use of this fund is on the development of our teams and our retail expansion footprint,” he said.
The company plans to open 130 to 150 new stores in the next two years, expanding its current network of 160 stores across 47 cities.
“We continue to see strong traction not only in the top cities but also in the tier I and tier II cities, and we want to continue to double down on our omnichannel strategy because we believe that is a very strong part of our business,” he added.
“This investment also represents a compelling opportunity to participate in India’s broader premiumisation wave—where consumers are increasingly gravitating towards high-quality, science-led, and design-first products that enhance everyday living,” said Rajiv Batra, director and consumer sector lead, ChrysCapital said in a statement. “We believe The Sleep Company is poised to become a dominant force not only in sleep solutions but across the wider comfort and wellness landscape.”
The Sleep Company was founded in 2019 by husband and wife Harshil and Priyanka Salot. The brand sells products like mattresses, pillows, bedding, cushions, office chairs, recliners, and sofas.
The company plans to grow stronger in metro and tier-I cities, while also expanding into tier-II markets.
Harshil Salot said that about 85% of The Sleep Company’s sales come from its website and physical stores. The remaining 15% comes from online marketplaces like Amazon and Flipkart.
The company also shared that it has reached an annual revenue run rate (ARR) of INR 750 crore and became profitable at the EBITDA level in the last quarter.
Based in Mumbai, the company has around 1,500 employees. It now plans to hire more people in product development and retail, using some of the new funds to support this growth.
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