The Sleep Company rolls out second tranche of Rs 2.4Cr ESOP buyback for employees

Wakefit rival The Sleep Company has initiated the second phase of its Employee Stock Ownership Plan (ESOP) buyback.

The buyback will benefit 105 staff members, with women comprising 50% of the beneficiaries, highlighting the company's commitment to rewarding its employees and promoting a culture of ownership.

It has rolled out the second tranche of the programme in just four years since its inception. The programme is set to benefit employees regardless of their seniority. 

The company first rolled out its ESOP buyback in 2023 worth Rs 83.47 lakh.

What did the CEO say about ESOP buyback?

Priyanka Salot, co-founder of The Sleep Company, emphasized the importance of acknowledging the contributions of all employees to the company's success.

"We strongly believe that every employee must be rewarded for their contribution to the growth and success of the company and thus employees across the board will get the same amount of ESOP under the current plan," Salot stated. 

Funding and investors

The development comes five months after it raised Rs 184 crore in a Series C funding round in December 2023 from Premji Invest and Fireside Ventures.

Since then, the company has seen strong growth, with these investments playing a pivotal role in expanding operations. The firm reported a revenue increase of 2.6 times over the past 12 months, reaching Rs 130 crore in sales in 2023. It plans to open over 150 stores nationwide by the end of 2024 to extend its reach further.

The Sleep Company is also backed by Alteria Capital, LogX Ventures, and Mamaearth chief Varun Alagh.

Offline expansion

Unlike others, The Sleep Company is considered a premium brand in the comfort-tech industry. In June 2022, it opened its first offline retail store in Bengaluru and has since established over 70 stores. Notably, it aims to exceed 150 stores by the end of this year to meet increasing consumer demand across India.

It also plans to significantly enhance its team, with over 500 new hires anticipated by the end of 2024. 

"As we embark into the new year with new challenges, we hope the ESOP buyback option will continue to enrich the lives of our employees and keep them motivated," Priyanka Salot added.

Founded in 2019, The Sleep Company is the brainchild of husband-wife duo Priyanka Salot & Harshil Salot. The brand offers mattresses, pillows, cushions, bedding, and office chairs. It sells its products across e-commerce platforms, including Amazon and Flipkart.