The Sleep Company (TSC), a pioneering firm in sleep and sitting solutions, has reached a significant milestone, achieving Rs 500 crore in annual recurring revenue (ARR) within just 4.5 years of its inception. As the company sets its sights on profitability by the end of FY25, this rapid growth underscores TSC’s disruptive impact on the traditional mattress industry.
Since its launch in 2019 by Priyanka and Harshil Salot, The Sleep Company has introduced innovative solutions that have transformed the fragmented and unorganized mattress market. With its smart grid technology, TSC offers a wide range of products, including mattresses, sofas, pillows, cushions, bedding, office chairs, and smart recliner beds. This technological edge has allowed TSC to stand out in a competitive market.
The company has swiftly expanded its footprint with 100 company-owned, company-operated (Coco) stores, making it the fastest direct-to-consumer (D2C) brand to achieve such a scale in just two years of entering the offline retail space. The first store was launched in Bengaluru in June 2022, and since December 2022, TSC has opened a new store every 4-5 days.
Harshil Salot, co-founder of TSC, highlighted the company’s unique approach: “Our omnichannel presence has disrupted the market. We have coined the term ‘Ropo’ – ‘research online, purchase offline’ – reflecting how consumers explore our products online and then experience them in-store. Our Coco stores provide a superior customer experience, ensuring seamless delivery and addressing queries first-hand.”
The Sleep Company has seen remarkable financial growth, with operating revenue soaring to Rs 127.14 crore in FY23 from Rs 74.05 lakh in FY20. The company is on track to reach the Rs 1,000 crore revenue mark in the next 2-3 years, driven by a comprehensive growth strategy that includes expanding its workforce from 1,000 to 1,300-1,400 employees by the end of 2024.
In addition to its success in the mattress industry, TSC holds the largest market share for office chairs in India, having achieved a 10X growth since the inception of its chair category. With the launch of its new chair brand, ‘ErgoSmart by The Sleep Company,’ TSC aims to double its market share in the next 24 months.
