Wakefit Innovations, a Bengaluru-based mattress and furniture maker, has submitted its Draft Red Herring Prospectus (DRHP) with SEBI, marking the next stage in its public debut. The company plans to raise ₹468.2 crore through a fresh equity issue and will also offer an offer-for-sale (OFS) of approximately 5.83 crore shares, enabling early investors and promoters to cash out
IPO Structure & Shareholders’ Exit
The IPO comprises two components:
- Primary issuance of ₹468.2 cr in fresh equity to fuel growth
- OFS of 5.8–5.84 cr shares from founders Ankit Garg, Chaitanya Ramalingegowda, and investors like Peak XV, Verlinvest, Investcorp, Paramark, Redwood Trust, SAI Global, and Nitika Goel
Use of Proceeds
Funds from the fresh issue will be allocated as follows:
- ₹82–82.15 cr to open 117–118 new company-owned stores, including one jumbo format
- ₹145 cr for lease and license costs across existing outlets
- ₹15.4 cr for new equipment and machinery
- ₹108–108.4 cr for marketing and brand promotion
- Remaining funds into general corporate purposes
Company Snapshot & Financials
Founded in 2016, Wakefit has grown into a full-stack, vertically integrated player in the ₹1,000 cr+ home and furnishings market. In FY24, it earned ₹986.3 cr in revenue, with a nine-month figure of ₹971 cr ending December 2024. Though losses narrowed to ₹15 cr in FY24 and ₹8.8 cr during the first nine months of FY25, profitability remains a key focus
Growth Strategy & Risks
Wakefit offers mattresses, sofas, dining sets, and furnishings through its COCO stores and e-commerce channels. Growth hinges on rapidly scaling retail (from 98 stores to 216 planned), but execution risks—such as lease liabilities, dependency on mattresses (over 62% revenue), and logistics—have been flagged in the DRHP
IPO Roadmap & Market Impact
- Bankers: Axis Capital, IIFL Capital, and Nomura are managing the issue
- Listing Goals: Targeting BSE and NSE once approval comes.
- Potential Deal Size: Fresh issue ₹468 cr plus OFS; total listing could reach ₹1,500–2,000 cr (~$200 mn)
This IPO could be among the largest in India’s consumer retail and home-tech sector and signals strong investor confidence in Wakefit’s growth vision inc42
Conclusion
By filing its DRHP to raise ₹468 crore, Wakefit aims to fund store expansion, enhance brand visibility, and drive long-term growth. While financial performance shows promise, the company must manage execution and profitability risks as it moves toward public listing.
