**Wakefit Innovations Ltd Plans ₹468.2 Crore IPO to Expand Store Network**
Wakefit Innovations Ltd, a prominent player in the home and furnishings sector, has filed for an initial public offering (IPO) with the market regulator, aiming to raise ₹468.2 crore to significantly increase its store presence. The draft red herring prospectus submitted to the Securities and Exchange Board of India reveals that, in addition to issuing new shares, the company will also offer up to 58.4 million shares from existing shareholders, including founders and major private equity investors.
Prominent among the sellers are Wakefit’s founders, Ankit Garg and Chaitanya Ramalingegowda, who plan to sell 7.73 million and 4.45 million shares, respectively. Institutional investors are expected to see substantial returns from their investments during the IPO. Notably, Peak XV is set to sell 25.06 million shares, which it acquired at an average cost of ₹20.52 each. Investcorp funds will sell 6.18 million shares, purchased at ₹85-88 each, while Verlinvest S.A. will offload 10.19 million shares bought at ₹82.67 each. Other sellers include Paramark KB Fund I, SAI Global India Fund, individual investor Nitika Goel, and Redwood Trust.
Founded in 2016, Wakefit specializes in mattresses, beds, sofas, and home furnishings, primarily selling through its website and app. The company has diversified its sales channels to include e-commerce platforms, experience centers, and company-owned stores. Since 2018, Wakefit has successfully raised multiple funding rounds from notable investors, including a recent ₹320 crore round in January 2023 led by Investcorp, with participation from Sequoia Capital India, Verlinvest, and SIG.
In addition to the IPO, Wakefit is also looking to raise up to ₹93.6 crore in a pre-IPO funding round. The company has appointed Axis Capital, IIFL Securities, and Nomura as the lead managers for the IPO.
Of the ₹468.2 crore targeted from the IPO, Wakefit plans to allocate ₹82.1 crore for opening 118 new outlets, ₹145.2 crore for lease payments on existing stores, and ₹15.4 crore for equipment purchases. Furthermore, ₹108.4 crore will be dedicated to advertising and brand marketing efforts. As of December 2024, Wakefit operated 98 stores and is set to launch its first large-format store, termed a Jumbo store, in Bengaluru.
Wakefit joins a growing list of direct-to-consumer companies entering the IPO market, following Honasa Consumer (Mamaearth), with others like Lenskart, Licious, and boAt expected to follow suit soon.
In the first nine months of FY25, Wakefit reported an income of ₹994.3 crore, alongside a net loss of ₹8.8 crore, as indicated in the draft prospectus.
**FAQ**
**What is Wakefit Innovations Ltd planning with its IPO?**
Wakefit Innovations Ltd aims to raise ₹468.2 crore through its IPO to expand its store network and enhance its market presence.
