The Sleep Company to invest over Rs 100 crore in brand building

New Delhi: The Sleep Company has secured Rs 480 crore in a Series D funding round led by ChrysCapital and 360 ONE Asset. A significant portion of the funding, over Rs 100 crore, has been allocated to brand-building efforts, including new campaigns, entry into new geographies, and enhancement of in-store experiences.

The fresh capital will support manufacturing expansion, offline retail scale-up, product innovation, and team growth. 

The company, which recently reached a Rs 700 crore annual revenue run rate and 60% year-on-year growth in FY25, has also opened its 150th exclusive brand outlet and doubled monthly revenues since its last raise.

The Sleep Company’s retail strategy integrates patented SmartGRID® technology and an omnichannel footprint. Its campaigns, including RIP Memory Foam and the SmartGRID vs Memory Foam Challenge, have repositioned mattresses as lifestyle products. A recent digital film featuring Anil Kapoor and an IPL 2025 partnership with Mumbai Indians have also contributed to broader consumer visibility.

Planned deployment of the funding includes capital expenditure for manufacturing facilities, expanded offline retail presence in metro and Tier-1 cities, and entry into adjacent comfort categories. The company will also invest further in research and development and strengthen functions across product, design, technology, and retail.

The company’s ROPO (Research Online, Purchase Offline) model, with 70% of revenue attributed to offline retail, continues to influence both brand perception and business performance. Avendus Capital acted as the exclusive financial adviser on the transaction.

Priyanka and Harshil Salot, Co-Founders, The Sleep Company, said, “This fundraise powers the next phase of our journey to lead the comfort-tech revolution in India. We’re scaling faster, opening more stores to be where our customers are, expanding capacity to meet growing demand, and doubling down on innovation to launch products that truly transform the way India sits and sleeps. 

As we look ahead, our focus is clear: strengthen our presence in metro and Tier-1 cities, deepen our reach in Tier-2 markets, invest further in R&D, and expand into new categories aligned with our long-term vision. This sets us up for the next three years, to scale with intent, grow sustainably, and move closer to our goal of becoming a cash-positive, innovation-first business.”

They added, “Over the years, we’ve seen a clear shift in how India views sleep and wellness: what was once a low-involvement purchase is now a lifestyle decision, with consumers actively seeking premium, research-backed solutions that offer real, tangible benefits. This funding marks an important milestone in our journey to build India’s most loved comfort-tech brand. From the start, our mission has been to reimagine comfort, something often overlooked, through science, innovation, and deep consumer insight.”

Rajiv Batra, Director and Consumer sector lead, ChrysCapital, said, “ChrysCapital is thrilled to partner with The Sleep Company at this pivotal moment in their journey as they redefine comfort-tech in India. In a short span of time, the founders, Harshil and Priyanka, along with the management team have built a category-defining brand anchored in innovation, customer-centricity, and operational excellence. Their patented SmartGRID® technology, omnichannel presence, and unwavering focus on product quality position them uniquely in the fast-evolving comfort-tech space.

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. 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, and we are excited to support them through their next phase of scalable and sustainable growth.”

Chetan Naik, Senior Fund Manager and Strategy Head, Technology, 360 ONE Asset, said, “The Sleep Company is disrupting comfort and sleep solutions through science-backed, tech-enabled approach. It is redefining comfort-tech in India through a powerful blend of patented material innovation, deep R&D focus, full-stack execution, and omnichannel excellence.

Backed by exceptional founders, the company has created a unique blend of digital discovery and immersive offline retail. With growing consumer resonance, an expanding product portfolio, and capital-efficient growth, The Sleep Company is well poised to become a category-defining brand. We’re excited to partner with Priyanka, Harshil, and the team on this journey.”