D2C startup Wakefit revenue doubles in a pandemic year
In FY21, Sequoia-backed D2C startup Wakefit recorded 2X growth, clocking Rs 410 crore revenue, say the founders. The year earlier, it registered a turnover of Rs 197 crore.
Amidst the COVID-19 pandemic, the startup pivoted to the home solutions space. Besides its flagship mattresses and sleep accessories, it expanded its portfolio to include a range of ergonomic furniture, including sofas, study tables, bookshelves, shoe racks, TV units, bedside tables, coffee tables, dining tables, and more.
“The shift towards adding furniture was always on the cards, but the pandemic pushed us to launch this earlier,” says Chaitanya Ramalingegowda, Co-founder of Wakefit.
Since its inception in 2016, Wakefit claims to be seeing its EBITDA touch around 10 percent year on year. In its first year of operation, the company recorded Rs 6.75 crore revenue. In FY18, it raked in Rs 27 crore and touched Rs 81 crore in FY19.
"Our product innovation and customer-centric DNA have enabled us to achieve 2-2.5X revenue growth year-on-year. We have been profitable every year since inception, and we have a deep focus on balancing profitability with a healthy growth trajectory,” says Ankit Garg, Co-founder of Wakefit.
Besides launching home solutions, Wakefit also focussed on Tier II and III markets. Chaitanya claims that close to 50 percent of the startup’s revenue comes from Tier II and III markets. Earlier, this market contributed to 35 percent of Wakefit’s revenue.
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Before you go, stay inspired with…
“It is very hard to build an inferior product into a brand. You need to be on your toes, you need to respond to customers and build customer trust in the best possible way otherwise your brand will not stand the test of time.”