Wakefit Receives SEBI Approval for ₹468 Crore IPO

Wakefit Innovations, a Bengaluru-based home and sleep solutions company, has secured approval from the Securities and Exchange Board of India (SEBI) to launch its Initial Public Offering (IPO). This marks a significant milestone in the company’s journey towards becoming a publicly listed entity.

IPO Structure and Stakeholder Participation

The proposed IPO comprises a fresh issue of equity shares aggregating up to INR 468.2 crore and an Offer for Sale (OFS) of 5.84 crore shares by existing shareholders. Prominent stakeholders participating in the OFS include co-founders Ankit Garg and Chaitanya Ramalingegowda, along with institutional investors such as Peak XV Partners, Verlinvest S.A., Investcorp funds, and others.

Utilisation of IPO Proceeds

Wakefit plans to utilise the funds raised through the fresh issue for several strategic initiatives:

• Store Expansion: Approximately INR 82 crore will be allocated to establish 117 new company-owned, company-operated (COCO) stores, enhancing Wakefit’s retail footprint across India.
• Marketing and Branding: INR 108.4 crore is designated for marketing and advertising efforts to bolster brand visibility and customer engagement.
• Capital Expenditure: INR 15.4 crore will be invested in acquiring new equipment and machinery to support production capabilities.
• Lease and Operational Costs: INR 145 crore is allocated for lease, sub-lease rent, and license fees for existing stores, ensuring operational stability.

The remaining funds will be directed towards general corporate purposes, providing flexibility for future growth opportunities.

Company Overview and Market Position

Founded in 2016, Wakefit Innovations has rapidly established itself as a leading direct-to-consumer (D2C) brand in India’s home and sleep solutions sector. The company offers a diverse range of products, including mattresses, furniture, and home décor, through both online and offline channels. Wakefit operates five manufacturing units across Bengaluru, Hosur, and Sonipat, equipped with advanced machinery to ensure high-quality production standards.

Financially, Wakefit reported a total income of INR 994.3 crore and a net loss of INR 8.8 crore for the first nine months of FY25. In FY24, the company achieved a total income of INR 1,017.3 crore, a significant improvement from INR 820 crore in FY23, while narrowing its net loss to INR 15.05 crore from INR 145.68 crore in the previous fiscal year.

The approval from SEBI positions Wakefit Innovations to tap into public markets, providing the company with the capital necessary to fuel its expansion plans and strengthen its market presence. The IPO is likely to draw strong investor interest, showing trust in Wakefit’s growth and the growing home and furniture market in India.

Lenskart Gets SEBI Nod for IPO, to Raise ₹2,150 Crore

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