The Sleep Company, a pioneer in the comfort-tech industry, has declared the rollout of its second tranche of an Employee Stock Ownership Plan (ESOP) buyback. This initiative stands as a testament to the company’s commitment to its workforce, benefiting a total of 105 employees, with women making up 50% of the participants.
Expanding Influence and Financial Growth
Founded by Priyanka and Harshil Salot, The Sleep Company has carved a niche in the market by merging advanced material science with sleep science to create superior comfort products. Since its inception, the company has seen rapid growth, evidenced by a robust increase in revenue which has grown 2.6 times over the past 12 months, culminating in Rs 130 crore in sales in 2023.
After securing Rs 13.4 crore in pre-Series A funding, followed by Rs 177 crore in a Series B Funding round led by Premji Invest and Fireside Ventures, The Sleep Company recently achieved Rs 184 crore in Series C funding. These developments have provided a strong financial foundation for initiatives like the ESOP buyback.
Strengthening Retail Presence
Marking a significant expansion strategy, The Sleep Company entered the offline retail space with the opening of its first store in Bengaluru in June 2022. With plans to open over 150 stores by the end of 2024, the company aims to enhance its omnichannel presence across India, making its innovative products more accessible to a broader audience.
Rewarding Employee Loyalty
The company’s ESOP buyback is not just a financial boon for employees but also a reflection of its core values. “We believe in rewarding our team who have been integral to our growth and success. This ESOP buyback is a testament to our appreciation for their hard work and dedication,” said Priyanka Salot, co-founder of The Sleep Company. This second tranche follows the first successful buyback in 2023, which was valued at Rs 83.47 lakh.
Industry Trends and Future Outlook
The trend of ESOP buybacks is gaining traction across the tech industry, with significant payouts reported by other firms such as Pocket FM, MyGate, Classplus, and Meesho. According to TheKredible, ESOP buybacks in the tech sector amounted to nearly $802 million in 2023 alone. This reflects a growing recognition of the importance of employee stock plans as a tool for retaining talent and aligning employee interests with corporate goals.
As The Sleep Company continues to innovate and expand, its commitment to its employees through such financial incentives is poised to bolster not only morale but also loyalty and productivity, setting a robust example in the competitive landscape of the tech industry.
