Wakefit, India’s leading direct-to-consumer (D2C) sleep and home solutions brand, has officially filed its Draft Red Herring Prospectus (DRHP) with SEBI to raise Rs 468 crore through a fresh IPO. In addition to the fresh issue, existing shareholders plan to sell up to 5.84 crore shares through an offer for sale (OFS).
The IPO marks a major step for Wakefit, which started in 2016 as a mattress brand and later expanded into furniture and home furnishings. It has since become a trusted name in the Indian D2C space, riding the wave of consumer preference for organized and digital-first home brands.
Funds for Expansion
The company aims to use the funds from the IPO to set up 117 COCO (Company-Owned Company-Operated) regular stores and one COCO jumbo store. Around Rs 82 crore will be spent on capital expenditure, Rs 15.4 crore on new equipment and machinery, and Rs 145 crore for lease and license-related expenses for existing stores.
A significant Rs 108.4 crore is also allocated for marketing and advertising activities to boost Wakefit’s brand visibility across India. The remaining amount will go toward general business expenses as the brand looks to scale its reach.
Investors Cash Out
As per the DRHP, Peak XV Partners (formerly Sequoia India), which owns 22.7% of Wakefit, plans to sell around 2.5 crore shares in the OFS. Other notable investors like Verlinvest, Investcorp Growth, Redwood Trust, SAI Global, and Paramark Fund are also participating.
Even Wakefit’s co-founders, Ankit Garg and Chaitanya Ramalingegowda, will offload a combined 1.21 crore shares. This IPO will allow many of Wakefit’s early investors to partially or fully exit their positions.
Revenue and Reach Grow
In the first nine months of FY25, Wakefit generated revenue of Rs 971 crore and managed to reduce its net loss to Rs 8.8 crore. In FY24, it reported Rs 986.3 crore in revenue, up sharply from just Rs 199 crore in FY20.
Wakefit currently earns over half of its revenue through its website and own stores. The rest comes from third-party marketplaces and multi-brand retail outlets. The IPO is being managed by Axis Capital, IIFL Capital, and Nomura, and the company will list on both BSE and NSE.
