Wakefit Innovations Ltd, the home and furnishings brand known for its mattresses and sofas, has filed draft papers with the Securities and Exchange Board of India (SEBI) to launch an initial public offering (IPO) aiming to raise ₹468.2 crore. The move is designed to more than double the company’s offline presence as it scales up from a fast-growing direct-to-consumer business into an omnichannel retail brand.
According to the draft red herring prospectus, the IPO will include a fresh issue of shares as well as an offer for sale of up to 58.4 million shares by existing investors and founders.
Promoters and Investors Cashing In
As part of the offer for sale, Wakefit co-founders Ankit Garg and Chaitanya Ramalingegowda will offload 7.73 million and 4.45 million shares, respectively.
Major institutional investors are also participating in the sale, locking in substantial returns:
- Peak XV Partners is selling 25.06 million shares acquired at an average cost of ₹20.52 per share.
- Investcorp funds will offload a combined 6.18 million shares purchased at ₹85–88 each.
- Verlinvest S.A. plans to sell 10.19 million shares acquired for ₹82.67 apiece.
Other sellers include Paramark KB Fund I (3.06 million shares), SAI Global India Fund (830,000), individual shareholder Nitika Goel (720,000), and Redwood Trust (170,000).
Growth Story
Founded in 2016, Wakefit started by selling mattresses online before expanding into beds, sofas, and a range of home furnishings. The company distributes primarily through its own website and app but has also built a growing network of experience centres and company-owned stores.
Wakefit has raised multiple funding rounds between 2018 and 2023 from marquee investors including Sequoia Capital India (now Peak XV), Verlinvest, and Investcorp. In its latest round in January 2023, the company secured ₹320 crore led by Investcorp with participation from existing backers.
The company plans to raise an additional ₹93.6 crore in a pre-IPO funding round, the prospectus notes.
IPO Proceeds to Power Expansion
Wakefit plans to channel the IPO proceeds into aggressive growth initiatives:
- ₹82.1 crore to open 118 new outlets
- ₹145.2 crore for lease payments on existing stores
- ₹15.4 crore on store equipment
- ₹108.4 crore for advertising and brand-building
As of December 2024, Wakefit operated 98 outlets and is preparing to launch its first large-format “Jumbo Store” in Bengaluru.
Financial Snapshot
Wakefit is part of a wave of direct-to-consumer brands testing public markets, following Honasa Consumer (Mamaearth), with Lenskart, Licious, and boAt expected to launch IPOs soon.
In the first nine months of FY25, Wakefit reported revenue of ₹994.3 crore with a net loss of ₹8.8 crore. For FY24, total income stood at ₹1,017.3 crore—up from ₹820 crore in FY23—while the net loss narrowed significantly to ₹15.05 crore from ₹145.68 crore a year earlier.
Book Running Lead Managers
The IPO will be managed by Axis Capital, IIFL Securities, and Nomura as book-running lead managers.
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