The Sleep Company, a Mumbai-based D2C sleep solutions startup known for its SmartGRID mattresses, has announced plans to raise ₹105 crore (about USD 12.3 million) in its Series D funding round. The investment is being led by Saffron Investments, with participation from Carillon Investments B.V. and Infinity Partners.
Saffron Investments is set to contribute ₹87.73 crore, while Carillon and Infinity will invest ₹9.74 crore and ₹7.77 crore respectively. The capital raise is backed by a board resolution approving the issuance of 19,093 convertible cumulative preference shares priced at ₹55,130 each, marking the official entry into this round.
Founded in 2019, The Sleep Company operates firmly within India’s robust D2C ecosystem, offering mattresses, pillows, cushions, bedding, and ergonomic chairs through both online and offline channels. The brand differentiates itself with patented SmartGRID technology, a polymer‑based grid system engineered for enhanced comfort and support.
With the infusion of funds, the company is projected to achieve a valuation of around ₹2,745 crore (approximately USD 323 million), representing nearly an 80% increase compared to its valuation during the Series C round in December 2023. In that round, the company raised $22 million led by Premji Invest and Fireside Ventures. To date, it has raised about $49 million from investors including Premji Invest, Fireside Ventures, and others. Post-transaction, Saffron Investments is expected to hold approximately 3.2% stake in the company.
For the fiscal year ending March 2024, The Sleep Company, a D2C brand, reported revenues of ₹312 crore—more than double the ₹127 crore recorded in FY23. However, the company’s net losses increased by 58% to ₹58.69 crore in FY24.
The funding will support aggressive growth initiatives, including expansion of product lines, enhancement of R&D capabilities, bolstering manufacturing, and scaling offline and omnichannel distribution presence. According to the disclosure, the raised proceeds will be used for general corporate purposes and further scaling of business operations. It may also form part of a larger raise, with potential for additional injections during the rollover period.
Operating in India’s expanding D2C space, The Sleep Company faces competition from brands such as Wakefit—which recently filed for an IPO to raise ₹468 crore—as well as SleepCat and Duroflex. Despite intensified competition, the company’s strong digital-native brand positioning and patented product innovation continue to differentiate it among consumers and investors alike.
This round of funding empowers The Sleep Company to solidify its status as a leading D2C sleep brand and accelerate its shift beyond a direct-to-consumer origin into a broader omnichannel presence. As homegrown D2C players increasingly attract large institutional capital, the company’s growth trajectory exemplifies the rising investor confidence in digital-first consumer brands reshaping India’s mattress industry.
