Sleep and home solutions specialist Wakefit Innovations has taken a significant step forward by filing its Draft Red Herring Prospectus (DRHP) with SEBI for an Initial Public Offering (IPO) of ₹468 crore.
The offering includes a fresh equity issue of ₹468 crore and an offer‑for‑sale (OFS) of up to 5.8 crore shares by promoters and early investors.
Stakeholders and Secondary Exit
The IPO features partial exits from key stakeholders:
- Promoters Ankit Garg and Chaitanya Ramalingegowda
- Early backers include Peak XV Partners, Verlinvest, Investcorp, and Paramark KB Fund
- Peak XV plans to sell 2.5 crore shares; Verlinvest and Investcorp will offload approximately 61 lakh shares.
This setup provides early investors liquidity while allowing Wakefit to raise fresh capital.
What the Funds Will Finance
Wakefit plans to allocate the capital from the fresh issue across several strategic priorities:
- ₹82 crore to build 117 new COCO (Company-Owned, Company-Operated) stores and one jumbo flagship location
- ₹15.4 crore for machinery, equipment, and production efficiency
- ₹145 crore for lease, sub‑lease, rent, and licensing costs for current outlets
- ₹108 crore to marketing and advertising to drive brand awareness
Any remaining funds will support general corporate requirements and operational needs.
Pre-IPO Placement Option
Wakefit is also considering a pre-IPO placement up to ₹93.6 crore with select investors. This would reduce the overall size of the fresh issue if completed before the IPO filing
From D2C Mattress Startup to Home Solutions Giant
Founded in 2016 by Ankit Garg and Chaitanya Ramalingegowda, Wakefit initially disrupted the mattress market through its direct-to-consumer model.
Over time, the company expanded into home furniture and décor. Today, it operates five manufacturing plants in Karnataka, Haryana, and Tamil Nadu and maintains more than 100 COCO stores spread across 35 cities.
Strong Financial Momentum
Wakefit posted approximately ₹813 crore in revenue with a net loss of ₹7.3 crore during FY24. In the first nine months of FY25, it recorded ₹636 crore in revenue and a loss of ₹18.4 crore.
The company is edge-operational: It reported an EBITDA-level profit of ₹65 crore in FY24 and saw a 24% year-on-year revenue growth.
Its current valuation stands between ₹1,500–2,000 crore, backed by ₹140 million in funding from Sequoia India, Investcorp, Verlinvest, and others.
Operational Reach and Presence
Wakefit’s omni-channel distribution includes:
- Five integrated production units in southern and northern India
- Nationwide coverage via 100+ company-operated stores and a robust e-commerce platform
The brand plans further retail expansion and strengthening of its digital marketplace.
Governance & IPO Preparation
Ahead of listing, Wakefit has transitioned from a private to a public limited entity, renaming itself Wakefit Innovations Limited.
It has brought on five independent directors and appointed Axis Capital, IIFL Capital Services, and Nomura as lead bankers.
Listing Outlook & Market Context
With the filing of its DRHP, Wakefit joins a growing cohort of D2C brands – including Zepto, PhonePe, and Lenskart – moving toward public markets. The company intends to debut on the stock exchanges by late 2025.
The IPO underlines Wakefit’s move from niche D2C mattress provider to a full-fledged home commerce leader with deep vertical integration and retail presence.
In Summary
- ₹468 crore IPO, including fresh funds and secondary sale
- Funding focus: Retail expansion, production infrastructure, and marketing
- Strong foundations: ₹813 crore revenue in FY24, EBITDA gains, 24% growth
- Solid backing: ₹1,500–2,000 crore valuation, robust investor base
- Next steps: Formal DRHP, SEBI review, and IPO listing by end-2025
