**Wakefit Transforms into Full-Stack Home Décor Retailer Ahead of IPO**
Wakefit, a tech-driven traditional business, has evolved from a mattress manufacturer to a comprehensive furniture and home décor retailer. The founders shared insights with Mint about their innovative asset-light strategy for establishing a physical presence in key Indian markets. Co-founder Ankit Garg expressed their ambition to become the “Amazon of home,” akin to how Decathlon dominates sports and Nykaa leads in beauty products.
Chaitanya Ramalingegowda, co-founder and CEO, explained their unique model of “company-owned, company-operated” stores that only display products without holding inventory. Orders are fulfilled from a centralized manufacturing facility, allowing for a cost-effective approach. Originally a direct-to-consumer (D2C) brand, Wakefit now sells through various channels, including marketplaces, quick commerce, its own website, and physical stores, boasting around 125 locations with plans to open an additional 170 in the next 12 to 18 months.
The upcoming IPO, valued at ₹1,288.89 crore, is seen as a pivotal move to bolster consumer trust and attract top talent. Ramalingegowda emphasized that in a competitive landscape, their speed to market and experience outweigh the financial clout of competitors. Supported by investors like Peak XV, Wakefit targets the Indian middle-class market with a low-cost structure, offering prices at least 50% lower than traditional players.
The founders view their past failures as instrumental to their current success, with Ramalingegowda having previously launched a dating app and a women-centric community platform, while Garg, an expert in foam production, was involved in a startup that ultimately failed.
Now, a decade after its inception, Wakefit aims to raise ₹1,288.89 crore through its public listing, with shares priced between ₹185 and ₹195. At the upper end of the price range, the company would be valued at approximately $669 million. Garg holds a 33.03% stake, while Ramalingegowda owns around 9.98%.
**FAQ**
**What is Wakefit’s business model?**
Wakefit operates on an asset-light model, utilizing company-owned stores that display products without holding inventory, fulfilling orders from a centralized manufacturing base.
