Wakefit Innovations Files IPO Papers with SEBI...
28 Jun, 2025
Wakefit Innovations, one of the fastest-growing direct-to-consumer (D2C) home and sleep solutions brands in India, has made a major step to its initial public offering (IPO) by submitting its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). Through a new share issuance and an offer of sale (OFS) of 5.83 crore equity shares by current shareholders, the proposed initial public offering (IPO) aims to raise 468 crore.
The Wakefit IPO will be made up of two components, according to the Draft Red Herring Prospectus (DRHP). In the first, 468 crore worth of equity shares would be a fresh issue, where the revenues would go straight to Wakefit Innovations to support its growth and expansion plans. In the second section, it will OFS where co-founders Ankit Garg and Chaitanya Ramalingegowda, as well as early institutional investors Sequoia Capital and Verlinvest, would be able to partially leave or dilute their shareholding through an Offer of Sale (OFS) of up to 5.83 crore shares. The shares will be listed on the BSE and NSE and the IPO will be managed by Axis Capital, IIFL Securities & Nomura Financial Advisory and Securities.
Wakefit Innovations has outlined a clear strategy for deploying the funds raised from the fresh issue.
The primary areas of investment include:
Retail Expansion: A significant portion of the proceeds will be used to open new Wakefit retail stores in major cities in India. The company wants to reinforce its omnichannel and tap more customers outside its current online-driven model.
Manufacturing and Equipment: The money will also be invested in improving and expanding manufacturing plants, such as new machinery and equipment to accommodate its expanding product line.
Branding and Marketing: Wakefit will invest in brand-building activities and marketing campaigns to create awareness and customer outreach in a growing, competitive home and furnishing market.
General Corporate Purposes: The remaining funds will be utilized in general corporate activities such as working capital requirements and future investments.
Wakefit Innovations is a mattress company with a direct-to-consumer model founded by Ankit Garg and Chaitanya Ramalingegowda in 2016 and has disrupted the traditional retail model. It has expanded its services over the years, offering a diverse portfolio of home solutions comprising beds, sofas, wardrobes, study tables and other furniture and home decor products.
The emphasis on quality, affordability and customer-centricity has helped Wakefit gain a large market share in the Indian market of online mattresses and furniture. The company has its website, large online stores and an expanding chain of real-life experience centers.
Wakefit Innovations has shown a good financial performance over the past years. As per industry reports and company disclosures, the company has revenue of over 800 crores in FY2024 and the growth rate is healthy year-on-year. It has also been able to become profitable, a feat that is significant in the D2C segment, owing to its streamlined supply chain, vertically integrated production and a low dependence on intermediaries.
The customer base of the company has grown at a very fast rate and it has over 2 million customers across more than 19,000 pin codes in India. The unique marketing initiatives of Wakefit like the Sleep Internship have also enhanced its brand recall and engagement.
The Indian home and sleep solutions market is experiencing a high rate of growth, growing disposable incomes, urbanization and increasing demand for quality home products. The D2C model, which enables brands such as Wakefit to manage the full customer experience, has become very popular, particularly after the pandemic.
Wakefit has to contend with both the legacy furniture retailers and new-age D2C brands including Pepperfry, Urban Ladder and Sleepyhead. Nevertheless, its integrated business model, R&D focus and digital presence give it a competitive advantage.
Through the proposed IPO, Wakefit Innovations seeks to hasten its growth and consolidate its leadership as a home solutions brand in India. The new capital will help the company to expand its operations, improve its products and venture into new markets.
Industry analysts believe that the IPO of Wakefit is a healthy sign to the Indian startup community that investors are gaining more confidence in local consumer brands with long-term business models.
The IPO filing of Wakefit Innovations is a significant step in the growth of the company. When the company goes public, the world will be keen on how it executes its expansion strategies and how it will sustain its profitability in a fast-paced and competitive market. The IPO is likely to generate a lot of attention among retail and institutional investors as more and more D2C success stories in India are becoming popular.
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