D2C sleep and furniture brand Wakefit aims to raise INR 377.2 Cr through a fresh issue and OFS, with proceeds fueling retail expansion, marketing, and infrastructure.
Wakefit Files RHP for December IPO Launch
Direct-to-consumer (D2C) furniture and mattress brand Wakefit has officially filed its Red Herring Prospectus (RHP), setting the stage for an Initial Public Offering (IPO) that opens on December 8 and closes on December 10.
The IPO includes a fresh issue of shares worth INR 377.2 Cr and an Offer for Sale (OFS) of up to 4.68 Cr equity shares by existing stakeholders. Anchor bidding is scheduled for December 5 (Friday), while listing is expected on December 15.
IPO Structure and Private Placement
Originally, Wakefit’s Draft Red Herring Prospectus (DRHP) proposed a larger fresh issue of INR 468 Cr and an OFS of 5.8 Cr shares. However, the scope of the offer was revised after the company conducted a private placement of 28.7 Lakh shares at INR 195 apiece, raising INR 56 Cr.
Key Stakeholders Selling via OFS
Promoters Ankit Garg and Chaitanya Ramalingegowda, along with investors such as:
- Peak XV Partners
- Nitika Goel
- Redwood Trust
- SAI Global India Fund I
- Paramark
- Verlinvest
…will partially offload their holdings via the OFS route in this IPO.
Use of IPO Proceeds
Wakefit plans to channel the fresh issue proceeds toward strategic growth and operational improvements:
- INR 30.8 Cr for expanding its retail footprint by adding 117 new stores
- INR 161.5 Cr for leasing and license fee payments for existing retail locations
- INR 15.4 Cr for equipment and machinery purchases
- INR 108.4 Cr for marketing and advertising
- The remaining funds will go towards general corporate purposes
Business Model and Operations
Founded in 2016, Wakefit offers sleep and home solutions like mattresses, bed frames, pillows, and mattress protectors. It operates on an omnichannel model, selling both online and through brick-and-mortar stores. Additionally, Wakefit leverages ecommerce giants like Amazon and Flipkart to broaden its reach.
Financial Performance Snapshot
Wakefit’s financials reflect solid revenue growth with signs of operational challenges:
- H1 FY26 Revenue: INR 724 Cr
- H1 FY26 Net Profit: INR 35.6 Cr
- FY25 Revenue: INR 1,273.7 Cr – a 29% YoY increase
- FY25 Net Loss: INR 35 Cr, compared to INR 15 Cr in the previous year
While revenue is on the rise, the growing net loss underscores the need for sustained cost management and operational efficiency.
Wakefit’s IPO marks a significant milestone for the fast-growing D2C brand. With strong brand recognition and a clear focus on retail expansion, the company is positioning itself for long-term scalability. However, potential investors should weigh the recent widening of losses and execution risks involved in retail expansion before making their decision.
