Premji Invest Opportunities Fund has emerged as the frontrunner to buy a significant majority stake in mattress startup The Sleep Company, at least three people aware of the deal said.
The fund, which is part of Wipro Ltd chairman Azim Premji’s private investment arm Premji Invest, is in an advanced discussion to invest $15-20 million ( ₹122-163 crore) in the Mumbai-based startup.
The Sleep Company is backed by early-stage focused venture capital fund Fireside Ventures.
It could not be ascertained immediately if the transaction would also have a secondary component.
The startup is also in talks with other institutional investors as well to raise capital, said the people cited above.
While a spokesperson for The Sleep Company declined to comment, email queries sent to Premji Invest and Fireside Ventures remained unanswered.
The Sleep Company was launched in late 2019 by husband-wife duo Harshil and Priyanka Salot. The company claims that its mattresses are built on patented SmartGRID technology, moving away from memory foam, spring, or latex base to a hyper-elastic polymer designed in the shape of a grid that provides far superior comfort to users.
Besides mattresses, the company also offers office pillows, chairs, and bedding items such as comforters and protectors. The company primarily sells its products through e-commerce sites such as Amazon and Flipkart, besides its own site.
The Sleep Company had secured ₹13.4 crore in its last round of funding led by Fireside Ventures in July 2021. Mamaearth founder Varun Alagh, in a personal capacity, also participated in the round.
Premji Invest has made a handful of investments this year. It includes acquiring a minority stake in Sagar Cements and a follow-on round in glass maker Gold Plus.
Premji Invest’s past investments include brands such as Fab India, Hygienic Research, ID Foods, Lenskart, Flipkart, Policybazaar, SBI General Insurance, Shubham Housing, Aditya Birla Capital, KreditBee, Best Value Chem, SB Packaging, and Micro Plastics.
India’s mattress market, which is highly unorganized, also comprises traditional companies such as Sheela Foam and Kurl-on.
The market has also been witness to the entry of new direct-to-consumer (D2C) brands such as SleepyCat, Sleepypanda, Wakefit and The White Pillow.
Earlier this month, VCCircle reported that home solutions company Wakefit Innovations Pvt. Ltd is in talks with several private equity investors to raise around $40 million in a fresh round of equity funding.
Also, this June, sector-agnostic investment firm Ananta Capital bought a majority stake in mattress and sleep solutions company Springwel Mattresses Pvt. Ltd.
Duroflex Pvt. Ltd, which operates its business under two main brands Duroflex and Sleepyhead, raised $60 million from Norwest Venture Partners in November 2021.
