Wakefit Business Model | How Wakefit Makes Money

A company with ISO 9001:2015 certification, Wakefit sells high-quality single, double, king, queen, and latex mattresses online. To make sure that its consumers are comfortable with its mattresses before making a purchase, the brand offers a special 100-day risk-free trial. Additionally, it provides a 20-year product warranty. Additionally, Wakefit produces mattresses in bespoke sizes to meet consumers' needs. It is a well-run business with individuals from a variety of backgrounds who have joined forces to conduct an in-depth study and provide you with the advantages of a good night's sleep.

About Wakefit

Established in 2016 by Ankit Garg and Chaitanya Ramalingegowda, Wakefit is a well-known Indian sleep and home solutions company that prioritizes offering premium and reasonably priced goods to improve its clients' general well-being. Wakefit, a company that specializes in mattresses, pillows, and furniture, creates items that support a comfortable and healthy lifestyle by fusing ergonomic elements with creative design. The business has become well-known for its dedication to providing excellent sleep experiences, open pricing, and a customer-centric philosophy.

Wakefit Success Story - Funding | Founders | Revenue | Valuation

Wakefit is an Indian company that is helping people to sleep better through its specially-designed mattresses. This StartupTalky post covers Wakefit’s origin, funding, competitors, founders, revenue, and more.

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Wakefit Business Model

Wakefit's business model is based on a direct-to-consumer (DTC) strategy. Wakefit produces its goods in-house while upholding stringent cost and quality control. Through its online platform, the business mattresses, pillows, and furniture directly to consumers, cutting down on distribution expenses and guaranteeing affordability. However, the brand also has a strong presence in various retail stores across the country as well as on several marketplaces. Sales of Wakefit's sleep and home solutions products, with an emphasis on providing a variety of options to suit various consumer tastes and needs, are the company's main source of income. The brand's success in the Indian market can be attributed to its focus on customer pleasure and its 100-night risk-free mattress trial.

How Does Wakefit Make Money | Wakefit Revenue Model

With an emphasis on growing its product line and omnichannel presence, Wakefit's revenue approach combines retail locations and online marketplaces.

• Generating Revenue Through Retail Stores and Marketplaces: About 30% of Wakefit's revenue comes from its retail locations, and another 20% to 30% comes via marketplaces.
• Generating Revenue Through Sleep Products: Wakefit's original focus was on mattresses, pillows, and bed frames, which still account for a significant amount of their sales.
• Generating Revenue Through Furniture: Wakefit has added study tables, bookshelves, dining sets, wardrobes, and sofas to its list of products, and currently, they are doing pretty well in the market.
• Generating Revenue Through Home Improvement Products: Through its retail locations, online shops, and other marketplaces, Wakefit also offers a wide range of home improvement products.

Wakefit's financial performance improved significantly from FY22 to FY23. Operating revenue grew from INR 633 crore to INR 813 crore, while total expenses increased from INR 744 crore to INR 966 crore, resulting in a larger loss of INR 146 crore in FY23 compared to INR 107 crore in FY22.

USP of Wakefit

Wakefit's unique selling point is that its products are created following in-depth customer feedback and interviews. Wakefit has developed a memory foam mattress that fits all body types thanks to extensive research. Pressure distribution, weight distribution, foam testing, and stress testing are the engineering parameters used to create the product.

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SWOT Analysis of Wakefit

Wakefit Strengths

• The core of Wakefit's business strategy is direct-to-consumer (DTC) marketing. Wakefit eliminates the intermediaries by selling directly through its web platform, which lowers traditional retail markups and distribution expenses.
• Wakefit's dedication to cost-effectiveness is clear. The average Wakefit mattress costs about 30% less than comparable products from conventional retail channels, per the company's internal data.
• From the acquisition of raw materials to the manufacturing process, Wakefit guarantees stringent quality control.
• The goal of Wakefit's creative designs and ergonomic features is to deliver the greatest possible sleep experience.

Wakefit Weaknesses

• The DTC market presents Wakefit with a number of difficulties, including scaling problems.
• Although there were a respectable amount of visitors to Wakefit's website, the conversion rate was poor.
• If Wakefit posted its items on e-commerce sites like Amazon and Flipkart, it would be required to pay a commission of 24%.

Wakefit Opportunities

• The IMARC Group analysis projects that the Indian mattress industry will rise to INR 25,500 Crore by 2026, therefore the company is well-positioned to benefit from this anticipated expansion.
• People have become more health-conscious in the wake of the pandemic, which presents an opportunity for Wakefit to further expand its business in this sector.
• Additionally, Wakefit can offer tailored solutions for older individuals, pregnant women, and allergy patients.

Wakefit Threats

• Wakefit opened experience centers in a few places, but there wasn't much traffic.
• There will be more rivalry in the future because so many new businesses are entering this market.
• Furthermore, if a company wants to be a leader in this field, it must continuously test and launch new goods because technology is always changing.

A Detailed Case Study on Wakefit Startup

Wakefit is a mattress manufacturing company that offers sleep solutions and other sleep-related products. Know more about its business strategies here!

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Conclusion

Wakefit's transformation from a startup to a market disruptor provides priceless insights into customer-centricity, creativity, and strategic thinking. They have revolutionized the Indian sleep and home solutions market by delivering unmatched value thanks to their direct-to-consumer business model, dedication to quality, and strategic collaborations. Wakefit is a living example of the strength of vision, strategy, and steadfast dedication as they innovate and grow. Ankit Garg and Chaitanya Ramalingegowda are influential voices in the rapidly growing consumer products industry because of their work in this area. In addition to offering goods, Wakefit has spearheaded a sleep revolution, making sure that everyone has access to good sleep, which is now a need rather than a luxury.

FAQs

What is Wakefit?

Wakefit is a sleep solutions startup that offers comfortable mattresses and other related products such as pillows and comforters.

Who are the founders of Wakefit?

Wakefit was founded by Ankit Garg and Chaitanya Ramalingegowda.

What is Wakefit business model?

Wakefit's business model focuses on providing affordable, high-quality home furniture and sleep products directly to customers online. They manufacture and sell products like mattresses, bed frames, pillows, and other sleep essentials, as well as furniture such as sofas and study tables. Their key selling point is offering value through a direct-to-consumer approach, cutting out middlemen.

How does Wakefit make money?

Wakefit makes money by selling home furniture and mattresses. They offer a range of products like beds, sofas, and mattresses, primarily through their online platform. They also have offline stores in some locations. They make money through the sales of these products.