Wakefit Success Story: A Leader in Sleep Solutions, Transforming Dreams into Reality

Wakefit is a Bengaluru-based startup dedicated to elevating awareness about the importance of sleep among the Indian populace. With the overarching goal of enhancing sleep health, Wakefit has positioned itself as a pioneering force in the market, offering an extensive array of sleep-efficient products. In this article you will understand the incredible Wakefit Success Story – a trailblazer in sleep solutions, turning dreams into reality with innovative products and unmatched expertise.

Established in March 2016 in Bangalore, Wakefit emerged as a sleep solutions startup with the ambitious objective of revolutionizing the sleep quality of individuals across India. 

The company’s core philosophy revolves around the belief that quality sleep is not a luxury but a fundamental necessity. This guiding principle propels the Wakefit team to consistently strive for innovation in product development, operational efficiency, cost optimization, and the delivery of an exceptional customer experience.

In addition to prioritizing innovation and efficiency, Wakefit distinguishes itself in the market by providing superior-quality products that not only excel in performance but also offer a more affordable alternative compared to competitors. The combination of quality, efficiency, and affordability positions Wakefit as a leader in the sleep solutions sector, contributing significantly to the overall well-being of its customers.

Wakefit currently has four variants of its core product:

Wakefit: Producing 500 Quality Mattresses Daily for a Good Night’s Sleep

In its current operational capacity, Wakefit demonstrates a commendable manufacturing output, producing over 500 mattresses daily and dispatching a substantial volume ranging from 7,500 to 9,000 mattresses per month. Our state-of-the-art machinery, sourced from Europe and the Middle East, underscores our commitment to delivering world-class quality characterized by both consistency and the use of superior-grade chemicals. Manufacturing is centralized in Bengaluru, with stringent quality checks conducted in Europe.

Wakefit proudly holds certification under the rigorous Certi-PUR process, specifically for its foam products. The chemicals employed in our mattresses are certified by Greenguard, an esteemed environmental institute dedicated to minimizing human exposure to pollutants. We reinvest our profits into cutting-edge German manufacturing equipment, ensuring optimal efficiency and cost-effectiveness.

As evidenced by a survey conducted on Wakefit.co, 48% of individuals in India report experiencing back problems, and a noteworthy 80% reportedly contend with work-related drowsiness at least three days per week. In response to the escalating prevalence of sleep-related concerns, Wakefit has integrated innovative features into its product design. Our mattresses boast proprietary “open-cell structures” for a cool sleeping experience during summers, while the high-density foam ensures comprehensive and complimentary support. Emphasizing body contour as a key consideration, Wakefit asserts that the memory foam incorporated in our mattresses delivers exceptional pressure relief.

Company Highlights

Wakefit Strategic Dominance: A Deep Dive into the Evolving Online Mattress Market

The Indian mattress industry, valued at an estimated INR 10,000 crore, is poised for substantial growth, projected to reach INR 14,000 crore by 2021 according to market reports. Over the past five years, the sector has demonstrated a Compound Annual Growth Rate (CAGR) exceeding 11%. Despite a presence of established brands, the market is predominantly characterized by unorganized players. Notably, there has been minimal innovation within the overall market landscape in recent decades.

The advent of new-age participants is ushering in a transformative phase for the mattress market in India, marked by the introduction of products meticulously crafted to cater to individual customer preferences and comfort requirements.

Internal assessments indicate that Wakefit.co presently commands a notable market share, comprising 2-3% of the overall mattress market. However, within the online sleep solutions space, the brand boasts a substantial dominance with a market share ranging between 35-40%. This robust performance positions Wakefit.co as a key player in the evolving landscape of the mattress industry.

In light of the escalating discourse on sleep health within wellness and health circles, coupled with a growing awareness of the pivotal role of sleep in overall well-being, the market is poised for rapid expansion. The team at Wakefit is resolute in their commitment to enhancing the sleep experience for individuals across India, aligning with the broader trend towards prioritizing sleep as an integral component of a healthy lifestyle.

Wakefit : Business Model and Revenue Model

Wakefit employs a direct-to-consumer (D2C) business model to optimize operational costs. Positioned within the e-commerce sector, the company showcases its product range on its official website, as well as on prominent online platforms such as Amazon, Flipkart, and PepperFry. This strategic approach allows Wakefit to extend its reach to over 19,000 pin codes across India through efficient delivery channels.

Demonstrating a remarkable threefold increase in revenue since its inception, Wakefit has consistently achieved profitability, sustaining this achievement since the year 2016.

At the forefront of Wakefit’s offerings is the flagship product, the Orthopedic Memory Foam Mattress, available starting at INR 5961. Additionally, the Dual Comfort Mattress is competitively priced at INR 5565, while the 7-Zone Latex Mattress and the Foam Spring Mattress are available from INR 7671 and INR 6260 onwards, respectively. 

The brand’s diverse product portfolio extends beyond mattresses to include an array of offerings such as pillows, bed frames, comforters, and various bedding accessories. Furthermore, Wakefit provides a comprehensive range of furniture designed for the living room, dining room, study, home and garden, as well as dedicated options for kids and more.

Wakefit : Exemplary Growth and Robust Revenue Performance

In the financial year 2020, Wakefit achieved a commendable revenue of INR 199 crore ($26.73 million), marking a substantial leap to INR 410 crore ($55.08 million) in the fiscal year 2021. This impressive surge signifies a remarkable 2X growth from the preceding fiscal year. Furthermore, the operating revenue of the company experienced a noteworthy 2.07X escalation, soaring from INR 197.44 crore to INR 408.59 crore during FY21.

As of November 11, 2021, Wakefit has established an annualized revenue run rate of INR 700 crore, doubling the rate observed in the previous financial year.

Key growth indicators for Wakefit include:

Strategic Backing: Wakefit has garnered support from prominent investment entities such as Sequoia Capital.

Manufacturing Prowess: Operating across 9 dedicated factories, Wakefit manufactures its diverse range of products.

Expansive Presence: With a network comprising 22 experience centers, including 6 in major Indian metros and 9 in smaller towns, Wakefit has fortified its nationwide presence.

Diversified Product Portfolio: Initially focusing on beds and bedding accessories, Wakefit has significantly diversified its offerings to encompass ergonomic furniture, encompassing sofas, study tables, bookshelves, shoe racks, TV units, bedside tables, coffee tables, dining tables, and more.

Extensive Geographic Coverage: Wakefit’s home solutions cater to over 19,000 pin codes across India.

Continuous EBITDA Growth: The EBITDA of Wakefit has exhibited a consistent year-on-year increase of 10% since its inception.

Impressive Inaugural Performance: Notably, Wakefit achieved a revenue of INR 6.75 crore in its inaugural year of operation.

Tiered Revenue Distribution: A significant portion of Wakefit’s revenue is derived from Tier 2 and Tier 3 cities, initially reported at 35% and subsequently expanding to nearly 50%.

Wakefit : Competitors

Wakefit : Strategic Vision for the Future

Our ambitious plans for the future revolve around achieving a targeted revenue of INR 1,000 crore by the fiscal year 2023. Over the years, the Wakefit factory area has experienced significant growth, expanding from its initial 3,000 sq.ft to 5,000, 30,000, and currently standing at an impressive 70,000 sq.ft. This expansion is a testament to our commitment to meeting the growing demands of our business, and we anticipate further growth necessitating additional expansions.

Presently, Wakefit operates four strategically located warehouses, situated in Pune, Mumbai, Bengaluru, and Hyderabad. These warehouses play a crucial role in ensuring efficient logistics and timely delivery of our products to our valued customers.

To bolster our manufacturing capabilities, we have already made substantial investments in cutting-edge machinery and state-of-the-art factories. As we look ahead, we are poised to further enhance and optimize our manufacturing processes to meet the escalating demand for our products.

In line with our commitment to providing a comprehensive and inclusive customer experience, Wakefit is dedicated to investing in Indian language content. This initiative aims to connect with a wider audience across the country, resonating with diverse linguistic and cultural preferences.

Wakefit : Awards and Achievements

Wakefit :  Funding and Investors

Conclusion 

In conclusion, Wakefit’s success is attributed to a combination of innovation, quality products, a strategic business model, and a commitment to customer satisfaction. The company’s proactive approach to market trends, strong financial performance, and future-focused vision position it as a formidable force in the sleep solutions industry.