Wakefit Innovations, India’s largest direct-to-consumer (D2C) home and furnishings brand by revenue, has filed its DRHP with the Securities and Exchange Board of India (SEBI), marking its intent to go public. With this move, Wakefit IPO aims to cement its position in the organised home and lifestyle retail space as it gears up for aggressive omnichannel expansion.
Wakefit IPO Structure: Fresh Capital and Investor Exits
Wakefit IPO comprises a fresh issue of INR 468.22 crore and an Offer for Sale (OFS) of 5.84 crore shares. The OFS includes shares by promoters Ankit Garg and Chaitanya Ramalingegowda, as well as key investors including Peak XV Partners, Verlinvest S.A., and Investcorp.
Wakefit IPO: Selling Shareholders
As part of the Offer for Sale (OFS), a total of up to 58.4 million shares will be offered by both promoters and existing institutional investors. Below is a summary of the selling shareholders in Wakefit IPO:
| Name of Selling Shareholder | Type | Equity Shares Offered |
|---|---|---|
| Ankit Garg | Promoter | 77,29,488 |
| Chaitanya Ramalingegowda | Promoter | 44,52,185 |
| Nitika Goel | Other | 7,19,364 |
| Peak XV Partners Investments VI | Other | 2,50,61,428 |
| Redwood Trust | Other | 1,69,800 |
| Verlinvest S.A. | Other | 1,01,93,506 |
| SAI Global India Fund I, LLP | Other | 8,26,300 |
| Investcorp Growth Equity Fund | Other | 54,55,909 |
| Investcorp Growth Opportunity Fund | Other | 7,26,245 |
| Paramark KB Fund I | Other | 30,64,860 |
Use of Funds: Expansion at Core
The net proceeds will be used to:
- Open 117 COCO (Company Owned, Company Operated) Regular Stores and one COCO Jumbo Store
- Pay lease/license rentals for existing stores
- Acquire new machinery
- Boost brand visibility through marketing
- Meet general corporate needs
A pre-IPO placement of up to INR 93.64 crore may also precede the offering.
Financial Performance
Wakefit has shown strong revenue growth alongside an improving EBITDA profile. While still loss-making, the company has drastically narrowed its losses over time.
Key Financial Indicators
| Particulars | FY22 | FY23 | FY24 | 9M FY25 |
|---|---|---|---|---|
| Revenue from operations | 632.59 | 812.62 | 986.35 | 971.09 |
| Net loss | (106.52) | (145.68) | (15.05) | (8.81) |
| EBITDA margin (%) | -11.84% | -10.55% | 6.68% | 7.87% |
| Return on Capital Employed (%) | -21.20% | -20.50% | 0.27% | 1.22% |
| Net Working Capital Days | 27.36 | 20.44 | 6.89 | 11.92 |
Wakefit’s adjusted EBITDA margin jumped from -11.84% in FY22 to 7.87% in 9M FY25 — a turnaround reflecting improved unit economics, better product margins, and operational scale.
Balanced Product Portfolio
Wakefit has diversified beyond mattresses, with each core segment now generating over INR 100 crore in annual revenue:
| Category | FY22 | FY23 | FY24 | 9M FY25 |
|---|---|---|---|---|
| Mattresses | 411.94 | 515.98 | 567.52 | 604.18 |
| Furniture | 132.21 | 195.11 | 301.22 | 260.65 |
| Furnishings | 88.43 | 101.53 | 117.62 | 106.26 |
Omnichannel Execution: Scaling Offline Rapidly
From just 1 COCO store in FY22, Wakefit now operates 98 COCO stores and 1,107 MBOs as of December 2024. Offline sales grew from <1% in FY22 to over 31% in 9M FY25, indicating strong adoption and customer preference for physical touchpoints.
Average order values in COCO stores are 56.99% higher than online, emphasising the brand’s value from experiential selling.
Branding & Product Innovation
Wakefit has positioned itself as a consumer-first brand using:
- Viral campaigns like ‘Sleep Internship’ (over 1.1 million applicants)
- Celebrity endorsements with Ayushmann Khurrana, Bobby Deol, and Rashmika Mandanna
- Product innovation: Regul8 (climate-controlled mattresses) and Track8 (sleep pattern trackers)
Conclusion
Wakefit IPO reveals a rare blend of scale, brand equity, and financial discipline. Despite earlier losses, the brand has achieved operational turnaround, diversified its revenue streams, and built an extensive omnichannel network.
As India’s home & furnishings market surges towards INR 6 lakh crore by 2030, Wakefit is well-positioned to ride the wave, both as a market leader and now, a potential public company.
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