Mumbai-based D2C sleep solutions brand SleepyCat raised $3.8 million in a funding round led by Saama Capital on August 16, 2021. The round also saw participation from existing investors –DSG Consumer Partners and Sharrp Ventures (Mariwala family office), which is the second external fundraise since inception.
Kabir Siddiq, Founder and CEO, SleepyCat, said, “We are excited to partner with Saama Capital along with the continued support of DSG Consumer Partners and Sharrp Ventures in our journey. SleepyCat is disrupting an existing category with purpose-driven products designed to increase the comfort and self-care quotient further up for Indian consumers.”
The sleep-inducing mattress company will use the proceeds from the funding to increase its research and development efforts to manufacture better products and process innovation.
“We want to change the way people shop for mattresses and other sleep products, direct from the factory, making the world a more chilled out place, one superbly comfortable product at a time. With this fundraiser, we will focus on design innovation and build world-class sleep solution products while expanding our manufacturing and distribution capabilities,” added Kabir Siddiq.
Based in Mumbai, SleepyCat built “a mattress-in-a-box” and focused on ‘factory to doorstep’ mattress delivery to solve the broken consumer journey involved in an online purchase. The premium D2C brand focuses on sleep solutions and has quickly served over one lakh customers across India.
D2C sleep solutions brands disrupting the segment with tech-driven products
As consumers are getting more aware of the benefits of getting better sleep, the overall sleep solutions market is witnessing a surge in India at a CAGR of more than 11 percent over the last five years.
Need for good sleep coupled with rising income levels, growing health consciousness, and growth in the real estate and hospitality sectors, among others, have start-ups offering innovative and technology-heavy sleep solutions to create a niche market.
A visible shift has also been observed in customers’ perspectives, where the focus is now on the comfort and functionality aspect of the product.
Kiranbir Nag, Partner at Saama Capital, said, “In the short time since it launched, SleepyCat has been able to create significant brand love amongst its users, which reflects in the impressive performance metrics. We are excited to partner with SleepyCat to make it India’s leading sleep solutions brand deeply rooted in product innovation and customer satisfaction.”
The sleep solutions startup — centered around its premium vacuum-pressed doorstep-delivered mattresses — has expanded its product portfolio to include a premium range of comfort products for the bedroom, including pillows, comforters, and beds. The brand has also entered the pet bedding category with its fluffy and orthopedic pet bed offerings.
“SleepyCat is well placed to be the most loved sleep solutions brand in India. The customer retention, ratings, and brand love have been phenomenal in a category typically tagged as ‘low repeat/low involvement. Despite the products being a discretionary purchase, the company has been on a healthy growth trajectory through the pandemic,” said Hariharan Premkumar, Head of India at DSG Consumer Partners.