Mattress maker Duroflex’s digital first brand, Sleepyhead plans to double down on seating furniture amid a broader push to find profitable adjacent categories to beds and mattresses.
Along with mattresses and bed frames, Sleepyhead is looking to double down on recliners and sofas to bring in premium categories on the platform. It is also looking to add differentiated beds and accessories like its peers, as it sees room for growth for furniture to shift from unbranded to branded products.
”We believe furniture is a large space, it’s a massive market. So given our strength, the size of the prize, we believe that Duroflex can have a meaningful play in recliners and sofas to start with,” Sridhar Balakrishnan, Group CEO of Duroflex told YourStory at Sleepyhead’s third store launch in Bengaluru.
Sleepyhead has taken a conservative approach for its omnichannel play, by setting up a cautious target of adding seven to eight more experiential stores in Bengaluru by the end of this calendar year.
Currently, the brands plans to focus on Bengaluru and Tier I cities, unlike its peer Sequoia backed Wakefit.co, which is looking to open 130 stores by the end of FY25, of which 40% are expected to be in Tier II towns. It is pertinent to note that Duroflex already has over 65 stores in the country.
“Our experiment with two Sleepyhead stores has been very positive, which is why we are expanding the brands retail presence. Our expansion is also going to be calibrated, we are very careful. Our strategy is to open the Sleepyhead stores with a strong focus on profitability. It is got to be careful because opening stores is one thing and making stores profitable is another,” adds Balakrishnan.
Sleepyhead, which is about a Rs 200 crore business for Duroflex, competes with Sequoia Capital-backed Wakefit.co, Reliance’s Urban Ladder and Fireside backed Sleep Company among others. Unlike its parent Duroflex, Sleepyhead defines late millennials, young adults and Gen Z cohort as its target group.
Bengaluru-based Duroflex reported a 3.5% increase in operating revenue, reaching Rs 1,095.3 crore in FY24, up from Rs 1,057.4 crore the previous year. According to filings made with Registrar of Companies (RoC), it also turned profitable, posting a Rs 11.2 crore profit after recording a loss of Rs 15.5 crore in FY23.
It last raised $60 million in October 2021 from Norwest Venture Partners.
