Net revenue

The Sleep Company is eyeing a net income of Rs 200 crore this financial year; spend Rs 40 crore on marketing in FY23

Direct-to-consumer (D2C) mattress brand The Sleep Company plans to launch more than 25 stores in the next six months in Karnataka, Maharashtra, Kerala, Chennai, Gurugram, Hyderabad and Eastern parts of India. India, Priyanka Salot, co-founder, The Sleep Company, told BrandWagon Online. The company opened its first experience store in Bangalore last week. “We expect offline business to represent around 30-35% of overall business over the next two years,” she added. The company aims to generate net revenue of Rs 200 crore in FY23, an increase of 244% from Rs 58 crore in FY22. However, the company declined to comment on the net income for financial year 23.

Comfort Grid Technologies Private Limited, the parent company of The Sleep Company, recorded net revenue of Rs 11.7 crore in FY21, while its net profit stood at around Rs 86.6 lakh, according to regulatory documents viewed by business intelligence firm Tofler. The company is targeting a net income of Rs 500 crore and aims to double its market share to 20% by FY24.

The company also aims to expand its international presence by entering European markets this fiscal year. Currently, The Sleep Company claims to have a presence in the United Arab Emirates (UAE) and Japan. “As lifestyles change, sleep disorders are on the rise globally. As a result, we will continue to expand our international presence. By the end of this fiscal year, approximately 10% of our business is expected to come from international markets,” explained Salot.

The company recently received funding worth Rs 13.4 crore in a pre-Series A round led by Fireside Ventures along with participation from LogX Ventures and Varun Alagh, co-founder, Mamaearth.

Salot said the company is in advanced talks to raise the next funding round, details of which will be revealed over the next two to three months. “With this round, we will focus on three key areas. One will be expanding our offline presence and making the reach much deeper. Second, we will expand our international presence as we have already filed a patent in more than 20 countries. And third, we aim to grow our market share,” she explained. The company says Tier 2 and Tier 3 cities now account for 45% of overall business.

In line with its expansion strategies, the company also says it has focused more on marketing as it plans to spend Rs 40 crore in FY23 from around Rs 11.6 crore in FY23. Fiscal Year 22. Typically, The Sleep Company claims to spend 20-22% of its revenue on marketing. “70% of spending this year was geared towards digital, while 30% towards traditional media such as TV, print, among others. When it comes to digital, Google, social media, Amazon and Flipkart are the key platforms,” Salot explained. In the past fiscal year, the company directed all marketing spend on digital platforms.

Also Read: Vega to Launch 90 Products in FY23; plans to expand its offline retail presence with the addition of 8,000 to 10,000 stores by the end of FY23

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