Wakefit.co, a D2C home and sleep solutions company, reported revenue of ₹825 crore in FY23, which was slightly lower than estimated figure of ₹900 crore due to the challenging market conditions in the last 4-5 months, according to Chaitanya Ramalingegowda, Director and Co-founder, Wakefit.co.
It operates three verticals: mattresses, home decor and accessories, and furniture, which contribute 60–65 percent, 8–10 per cent, and 22–25 per cent, respectively. Going forward, the company aims to continue the growth momentum at 30 per cent YoY for this year as well. In FY22, it made revenues of ₹636 crore.
“The 30 per cent Y-o-Y growth in revenue is a testament to the satisfaction people have found in our products. We continuously work towards bringing premium-quality products at affordable prices,” the co-founder said.
Focus on expansion
The brand will focus on omnichannel expansion, scaling supply chain operations, and enhancing brand-building initiatives. “We hope to end FY24 with around 80 to 100 stores and hence will be adding stores over the next six to nine months,” explained Ramalingegowda.
In FY23, Wakefit.co launched 28 physical stores that are company-owned and company-operated and are present across 15 cities in the country, which has helped in penetrating deeper pockets and being available closer to customer hubs in both metro and tier-2 cities.
Regarding capex for this year, the cofounder said that they made most of the major capex needed to sustain their revenue growth. “We now require small investments to either push past some of the bottlenecks in the assembly line, some machine wear and tear, and so forth, which would require around $2–3 million.”
Choppy demand
According to the company, the biggest worry for the company was that demand was choppy due to layoffs and others across various sectors. “While we feel that a large part of the cycle is behind us and hold a fair degree of confidence in consumer sentiment.”
While it will not be introducing new categories, it plans to go deeper into the categories that are already working very well. Currently, in terms of unique designs in each category, it has around 10 to 15 SKUs.
With an eye on profitability, Wakefit.co expects to cross the ₹1,000 crore mark in FY24. The company is pegging its next stage of growth on expanding its portfolio and a wider geographic and demographic spread. Currently, it claims to have serviced over 19,000 pin codes across the country, catering to over 2 million customers across seven years.
“We forayed into the home solutions market in 2020 and, since then, have witnessed rapid growth in those categories. FY23 further solidifies our position in the home and sleep solutions industry. This year, our focus will be on pursuing our goal to become a market leader in the home and sleep solutions category,” noted Ankit Garg, CEO and co-founder of Wakefit.co.