Bengaluru-based sleep and home solutions startup Wakefit is set to hit the primary market as it plans a public listing worth INR 1,500-2,000 cr (~USD 200-231 million) and has picked 3 merchant bankers. According to some reports, the Wakefit IPO will be managed by Axis Capital, IIFL Capital Services, and Nomura as its lead investment banks for the public listing.
Wakefit IPO in Progress
The IPO is still in the works, with Wakefit expected to submit IPO papers in a few months. While the company hasn’t finalised the fresh issue and OFS split, the listing will be for both raising fresh capital and exit for early investors.
Founded in 2016 by Ankit Garg and Chaitanya Ramalingegowda, Wakefit started as a mattress-focused direct-to-consumer (D2C) brand and has since expanded to a range of home furniture and decor products, including sofas, study tables, bookshelves and TV units.
Wakefit IPO – Financials
Wakefit’s growth is reflected in its financials. The company saw a 21% growth in revenue in FY24 to INR 986.35 crore from INR 812.62 crore in FY23. More impressively, it reduced its net losses by 90% from INR 145.68 crore in FY23 to INR 15.05 crore in FY24. Some reports put FY24 revenue at INR 1,017 crore, indicating a consistent upward trend.
Investor Backing
Wakefit has raised over USD 100 million (~INR 850 crore) from investors including Peak XV Partners, Paramark Ventures (South Korea), Verlinvest (Europe), Investcorp and SIG. Wakefit IPO will provide partial exits to some of these investors, though the OFS portion is yet to be decided.
Competitive Landscape
Wakefit operates in the fast-growing home and sleep solutions space in India. It competes with established players like The Sleep Company (backed by Premji Invest), WoodenStreet (funded by Westbridge), Pepperfry, Duroflex, Kurlon, Sleepwell and IKEA. The Indian furniture and mattress industry is expected to reach USD 3.2 billion (~INR 27,533 crore) by 2029 and has space for players like Wakefit to grow.
IPO Pipeline
Wakefit’s IPO comes at a time when new-age Indian startups are tapping into the capital markets. In 2024 alone, 13 startups, including Swiggy, Mobikwik and Ola Electric raised over INR 29,000 crore (~USD 3.4 billion) through public listings. This is a big jump from 5 IPOs in 2023 and 2 in 2022, and indicates growing investor interest and confidence in tech-enabled consumer businesses.
In 2025, 25 startups are expected to go public, including well-known names like Flipkart, Oyo and PhonePe valued at over USD 100 billion (~INR 8.60 lakh crore).
Conclusion
Wakefit’s move to go public is a big milestone in its journey from a mattress startup to a full-fledged D2C home solutions brand. With strong financials, good investor backing and a growing market, the IPO will fuel its next phase of growth and validate the momentum in India’s startup IPO.
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