After posting Rs 825 crore in revenue for FY23, Wakefit.co's aim in FY24 is to be profitable with Rs 1,100 crore at the top-line.
The company will look to keep expanding its omnichannel presence and invest in its supply chain to achieve the revenue target, Chaitanya Ramalingegowda, co-founder of the D2C mattress-to-furniture manufacturer, told BQ Prime.
"Supply chain for furniture is in the same place where cold storage supply chain used to be a few years ago. Because this is a heavy and bulky item, this gets scratched every time you load and unload it, and the trucks and the staff are not really geared to deliver," he said.
"So, we're creating this whole ecosystem in the cities that we are present in—the right tracking ecosystem, the right supply chain and the right carpenter ecosystem to be able to deliver and install to our customers."
Wakefit.co ended FY23 with 22 physical stores, Ramalingegowda said. It is looking to take that number to 80 by FY24.
"(Offline) is a growth lever, which means our costs are lower, payback period is faster because the revenue there is much higher than the online revenue per customer ... So, that is something that we'll double down upon over the coming 12 months."
The company also claims to have set up India’s largest furniture factory in Bengaluru, which manufactures wardrobes, dining sets, bedside tables, shoe racks, and coffee tables, among others, and contributes to 20-25% of Wakefit.co’s revenue.
Wakefit's portfolio started only with sleep-focused products—such as mattresses, pillows, bed frames, mattress protectors, comforters, neck pillows, and back cushions in 2016.
The company is not looking to do sizeable capex this year, because of the factory, Ramalingegowda said. "We'll have to see how the capacity utilisation goes and then take a call."
There are no plans for a fundraise as well, given that the company recently closed a $40 million round, he said. "We have been very frugal in these last four rounds over eight years. We have barely raised $100 million. We are fairly sorted and we burn only a few lakh a month, so we are very, very careful in that direction. So, until there is a specific need, we may not look at the fundraise for the next 12 to 18 months."
The company is backed by marquee investors, such as Sequoia Capital India, Verlinvest, SIG and Investcorp.
On the plans for a potential listing, Ramalingegowda said it's too early to venture down that path.
Watch the full interview here:
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