News

Wakefit Files DRHP with SEBI for ₹468 Cr IPO; Plans Aggressive Offline Expansion

• ByStartupStory     |    June 28, 2025

Bengaluru-based mattress and home furniture retailer Wakefit Innovations Pvt Ltd has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), marking its intent to raise ₹468.2 crore through a fresh issue and offer for sale of up to 5.8 crore equity shares, as part of its upcoming Initial Public Offering (IPO).

Backed by marquee investors such as Peak XV Partners, the company aims to utilize the IPO proceeds primarily to fuel retail expansion through 117 new COCO-Regular stores and one COCO-Jumbo store. COCO, or company-owned company-operated formats, are a key part of Wakefit’s offline push. While the COCO-Regular stores range between 400 sq ft to 10,000 sq ft, the larger Jumbo outlets are expected to occupy 50,000 sq ft to 2,00,000 sq ft.

In addition to expanding its retail footprint, Wakefit plans to use the funds for leasing, sub-leasing, licensing fees, purchase of new machinery, as well as for marketing, advertisements, and general corporate purposes.

Founders Ankit Garg and Chaitanya Ramalingegowda will offload 7.7 crore and 4.5 crore shares respectively in the offer for sale (OFS). Existing institutional shareholders Peak XV Partners, Redwood Trust, and SAI Global India Fund will also partially exit their holdings through the OFS route.

The IPO comes at a time when several Indian consumer internet companies are preparing to go public in 2025, with names like BlueStone and Urban Company also in the fray.

Wakefit reported ₹971 crore in revenue during the nine months ended December 31, 2024, with a loss of ₹88.09 crore. However, it closed FY24 with ₹1,017 crore in revenue, marking a 24% YoY growth, and turned EBITDA positive during the same period.

Investment banks Axis Capital, IIFL Capital Services, and Nomura Financial Advisory and Securities are acting as the lead book-running managers for the IPO.

The development marks a significant milestone for Wakefit, which started as a D2C mattress brand and has since evolved into a full-stack home solutions company. The IPO will provide the brand with fresh capital to strengthen its omnichannel strategy, even as it looks to enhance profitability and brand recall in a competitive home furnishing market.

Follow Startup Story