Wakefit Innovations has raised INR 56 crore in a pre-IPO placement, valuing the company at about INR 6,408 crore, as the D2C mattress-and-furniture maker moves closer to its public-market debut. DSP India Fund has picked 20,51,282 equity shares worth INR 40 crore, and 360 ONE Equity Opportunities Fund bought 8,20,512 shares worth INR 16 crore in Wakefit at INR 195 per share.
Wakefit pre-IPO fundraising is part of an INR 93.6 crore pre-IPO window outlined at the time of its draft prospectus filing with the Securities and Exchange Board of India (SEBI) in June.
The Bengaluru-headquartered company had filed its DRHP to raise INR 468.2 crore via a fresh issue, alongside an offer for sale (OFS) of up to 5.84 crore shares by existing shareholders. Proceeds from the primary leg are earmarked for accelerating store expansion—117 regular COCO outlets and one jumbo format—besides lease payments, equipment purchases, and brand spends. Bookrunners on the issue are Axis Capital, IIFL Capital Services and Nomura.
Wakefit’s growth metrics have improved ahead of the float. Revenue from operations rose to INR 986 crore in FY24 from INR 812.6 crore in FY23, while net losses narrowed sharply to INR 15 crore from INR 145.6 crore. In the nine months ended 31 December 2024, the company posted INR 971 crore in operating revenue with a net loss of INR 8.8 crore. As of December 2024, Wakefit operated 98 offline stores after entering physical retail in 2022.
Promoters Ankit Garg and Chaitanya Ramalingegowda together held 43.47% prior to the Wakefit pre-IPO round, with public shareholders owning the rest—Peak XV Partners at 22.7% (largest public holder), Verlinvest at 9.89%, Investcorp at 9.39% and Elevation Capital at 4.73%. Elevation also bought INR 32.5 crore worth of shares from employees earlier this year in the run-up to the listing.
“The pre-IPO placement underscores investor confidence in our omnichannel expansion and category depth,” Ankit Garg, co-founder & CEO, said. The company intends to prioritise store roll-outs and marketing to deepen presence in Tier-II and Tier-III markets, management indicated in its draft filing.
Analysts tracking new-age consumer offerings said the issue will likely be benchmarked against listed peer Sheela Foam and other digital-first mattress brands. “Sustained store productivity and discipline on marketing intensity will be key to the path to profitability,” said Mumbai-based analyst.
Wakefit competes across home solutions with incumbents and newer rivals alike, including Sheela Foam (Sleepwell/Kurl-On) and The Sleep Company, while pushing deeper into furniture and décor. Of the planned fresh issue, about INR 227 crore is targeted for store expansion and roughly INR 108 crore for marketing and brand building, industry reports summarising the draft document show.
Bottomline: Subject to regulatory approvals and market conditions, the company may complete the remaining pre-IPO headroom (up to INR 93.6 crore) and then proceed to launch the IPO. Wakefit pre-IPO fundraising will reduce the net fresh issue size accordingly, as specified in the DRHP.
Wakefit Pre-IPO Placement: Snapshot
- Amount raised: INR 56 crore pre-IPO; implied valuation ~INR 6,408 crore.
- Planned pre-IPO window: up to INR 93.6 crore per DRHP.
- Wakefit IPO Structure: INR 468.2 crore fresh issue + OFS up to 5.84 crore shares (~INR 1,138.80 crore, calculated on the basis of pre-IPO price of INR 195 per share ).
- Use of proceeds: 118 COCO stores (incl. one jumbo), lease, equipment, marketing (~INR 108 crore).
- Recent performance: FY24 revenue INR 986 crore; 9M FY25 revenue INR 971 crore; FY24 net loss INR 15 crore; 9M FY25 net loss INR 8.8 crore.
- Network: 98 stores as of 31 Dec 2024.
- Key investors: Peak XV, Verlinvest, Investcorp, Elevation Capital.
Final Words
Wakefit pre-IPO fundraising signals strong investor confidence as the company advances toward its market debut. With expanding stores, improving revenues, and narrowing losses, execution and profitability remain key watchpoints. For consumers and the industry, its omnichannel push marks a significant D2C entrant set to compete closely with established mattress and home brands.
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