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Chandigarh: Wakefit Innovations Limited, India’s leading direct-to-consumer (D2C) home and sleep solutions brand, has taken a major step towards going public. The Bengaluru-based company filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise funds through an Initial Public Offering (IPO).
According to the DRHP, the IPO will consist of a fresh issue of equity shares aggregating up to ₹468.2 crore and an Offer for Sale (OFS) of up to 5.84 crore equity shares by existing shareholders. The OFS will see participation from the promoters—Ankit Garg and Chaitanya Ramalingegowda—as well as other key early investors such as Peak XV Partners Investments VI, Redwood Trust, Verlinvest S.A., SAI Global India Fund I LLP, Investcorp Growth Equity Fund, Investcorp Growth Opportunity Fund, and Paramark KB Fund I. Nitika Goel, a senior leadership team member, is also among the selling shareholders.
Use of IPO Proceeds
The company intends to utilize the net proceeds from the fresh issue to fund a multi-pronged growth strategy:
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₹82 crore has been earmarked for the establishment of 117 new COCO (Company-Owned, Company-Operated) Regular Stores and one COCO Jumbo Store. These stores are part of Wakefit’s push to expand its offline footprint and offer a more integrated omnichannel experience to its customers.
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₹15.4 crore will be allocated for the purchase of advanced machinery and equipment aimed at upgrading its manufacturing capabilities.
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₹145 crore is intended to be used for payment of lease rentals, sub-lease rent, and license fees for existing stores. This indicates the company’s continued focus on maintaining and expanding its retail presence in key urban and semi-urban areas.
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₹108.4 crore will be directed toward marketing and advertising expenditures to boost brand visibility, customer acquisition, and digital reach.
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The remaining proceeds will be used for general corporate purposes, which may include working capital requirements, acquisitions, and technology investments.
Market Leadership and Growth Trajectory
Founded in 2016, Wakefit has rapidly emerged as the dominant D2C player in India’s home and sleep solutions segment. As per a report by Redseer, Wakefit was the largest D2C home and furnishings brand in India in terms of revenue for Fiscal 2024.
As of March 31, 2024, the company crossed the milestone of ₹1,000 crore in total income, a first among its organized, homegrown competitors. For FY24, Wakefit reported operational revenue of ₹986.3 crore. In the nine-month period ended December 31, 2024, the company had already achieved revenues of ₹971 crore—demonstrating strong year-on-year growth and robust customer demand.
Product Portfolio and Distribution Strategy
Wakefit’s diverse portfolio includes a wide range of products, from mattresses and pillows to furniture, furnishings, ergonomic office chairs, and home décor. The brand operates on an omnichannel model—selling products through its proprietary platforms such as its website and COCO stores, as well as through third-party e-commerce platforms and multi-brand outlets.
The company is also known for its customer-centric innovation, including a 100-night trial for mattresses and extended warranties, which has helped build trust and brand loyalty across India.
Manufacturing Excellence
Wakefit currently operates five manufacturing facilities, with two located in Bengaluru, Karnataka, two in Hosur, Tamil Nadu, and one in Sonipat, Haryana. These facilities are equipped with advanced automation and robotics, including robotic arms, roller belts, and conveyor systems that enhance productivity, reduce waste, and maintain consistent product quality. The company’s vertically integrated manufacturing model allows it to control quality and reduce operational inefficiencies.
Listing Plans and Market Advisors
The company has appointed Axis Capital Limited, IIFL Capital Services Limited, and Nomura Financial Advisory and Securities (India) Private Limited as the Book Running Lead Managers (BRLMs) for the IPO. The equity shares are proposed to be listed on both the BSE and the NSE, subject to regulatory approvals, paving the way for the company to reach a broader base of investors.
Industry Outlook
India’s home and furnishings market is projected to continue growing at a double-digit CAGR, fueled by rising urbanization, increased spending on home improvement, and a shift toward organized retail. Wakefit, with its robust digital infrastructure, manufacturing backbone, and customer-first approach, is strategically positioned to leverage this market expansion.
The upcoming IPO is expected to provide the company with the financial muscle to scale further, innovate faster, and enhance brand visibility—solidifying its position in an increasingly competitive landscape.
