The Sleep Company, a comfort-tech firm known for chairs, mattresses, and recliner beds, aims to reach INR 1,000 crore in revenue by FY27. The company is significantly expanding its physical store network, planning to grow from 100 to 150 stores by March, covering more cities and increasing store density. Currently, 65% of its revenue comes from physical outlets. Co-founded in 2019 by Harshil and Priyanka Salot, the firm is boosting its advertising spend to INR 85 crore by FY25 to achieve this milestone, after clocking a revenue of INR 335 crore in FY24.
The Sleep Company, a leading comfort-tech firm specializing in chairs, mattresses, and recliner beds, has set an ambitious goal to achieve INR 1,000 crore in revenue by the fiscal year 2027. Established in 2019 by the husband-wife duo Harshil and Priyanka Salot, the company is significantly shifting its focus towards expanding its physical retail presence. Currently, the firm operates 100 stores across 30 cities in India, which contribute to 65% of its total revenue, while the remaining 35% comes from online sales. This marks a shift from the previous 50-50 revenue split between offline and online channels noted in October.
The company's aggressive expansion plan aims to increase its store count from 100 to 150 by March, with new stores opening every four to five days. This expansion will not only increase its footprint in additional cities but also enhance store density in top cities, further boosting revenue from physical outlets. This strategy comes in response to a report by Accel and Fireside Ventures, which highlighted a growing investor preference for businesses with substantial physical retail presence over purely online brands.
To support this growth, The Sleep Company is also ramping up its advertising expenditure. It spent INR 70 crore on advertising in the fiscal year ending March 2023 and plans to increase this to INR 85 crore by FY25. This increased spend is expected to drive brand awareness and attract more customers to both its physical stores and online platform.
The company's revenue for FY24 stands at approximately INR 335 crore. To achieve its target of INR 1,000 crore by FY27, The Sleep Company is leveraging its robust retail expansion strategy and substantial investment in advertising. This approach is expected to enhance its market presence, improve profitability, and position the firm as a dominant player in the comfort-tech industry.
Overall, The Sleep Company's strategic focus on physical retail expansion, combined with increased advertising efforts, reflects its commitment to achieving long-term growth and establishing a strong foothold in the competitive market. The firm's holistic approach aims to capitalize on the growing consumer demand for high-quality comfort products, ensuring sustainable growth and profitability in the coming years.
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