**ChrysCapital to Invest Over $50 Million in The Sleep Company**
Private equity firm ChrysCapital is poised to invest more than $50 million in The Sleep Company through a combination of primary and secondary transactions, according to sources familiar with the matter. Some early investors are anticipated to partially or fully exit their positions, while other private equity firms that were previously interested have decided to withdraw from the negotiations.
In April, it was reported that The Sleep Company was in discussions with several investors, including Kedaara Capital and IIFL, to secure over $60 million. However, Kedaara and IIFL have since exited the talks. The Sleep Company and ChrysCapital have not yet responded to inquiries regarding the transaction.
The valuation of The Sleep Company is estimated to be around $400 million (approximately ₹3,400 crore), which is double its valuation during a Series C funding round in November 2023, where it raised ₹184 crore from existing investors Premji Invest and Fireside Ventures.
The Sleep Company, known for its mattresses and related products, has expressed ambitions to expand its physical store presence, aiming for ₹1,000 crore in revenue by FY27. Currently, about 65% of its revenue is generated from offline sales. Co-founder Harshil Salot mentioned that the company plans to increase its store count from 100 to around 150 by March, with new locations in both existing and new cities.
Additionally, The Sleep Company is exploring international markets, starting with the UK, and has plans to expand into Europe and North America. Founded in 2019 by Harshil and Priyanka Salot, the company produces a range of products including mattresses, sofas, recliners, pillows, and cushions. Its operating revenue surged to ₹312.3 crore in FY24, up from ₹127.1 crore the previous year, although losses increased to ₹58.6 crore from ₹37 crore.
The Sleep Company faces competition from brands like Wakefit, Sleepwell, SleepyCat, Duroflex, and Kurl-On, with some competitors, including Duroflex and Wakefit, preparing for initial public offerings.
India’s mattress market, valued at $2.3 billion in 2024, is projected to grow at a compound annual growth rate of 6.1% over the next eight years, reaching $4 billion. Factors driving this growth include rising disposable incomes, urbanization, increased awareness of sleep health, the expansion of e-commerce, and advancements in mattress technology.
**FAQ**
**What is the significance of ChrysCapital’s investment in The Sleep Company?**
ChrysCapital’s investment signifies confidence in The Sleep Company’s growth potential and market position, especially as it aims to expand its physical presence and explore international markets.
