Wakefit Files DRHP With SEBI for ₹468 Crore IPO

Wakefit Innovations, a Bengaluru-based home and furniture brand, has submitted its Draft Red Herring Prospectus (DRHP) to SEBI for an initial public offering (IPO). The offering includes a fresh equity issue amounting to ₹468.2 crore, alongside an Offer for Sale (OFS) of 5.83 crore shares by existing stakeholders. 

Among those offloading shares are company promoters Ankit Garg and Chaitanya Ramalingegowda, as well as major investors including Peak XV Partners, Verlinvest S.A., Investcorp funds, and others. The company is also considering a pre-IPO placement worth up to ₹93.6 crore, which could potentially reduce the fresh issue size.

Use of Proceeds

Funds raised from the fresh issue are intended to support Wakefit’s expansion and brand-building efforts. The firm plans to allocate ₹82 crore towards setting up 117 new COCO (Company-Owned, Company-Operated) regular stores and one large-format COCO Jumbo Store.

₹15.4 crore will be invested in new machinery and equipment, while ₹145 crore is earmarked for lease and licence payments for its existing outlets. Additionally, ₹108.4 crore will be spent on marketing and advertising to boost brand visibility. Any remaining funds will be directed towards general corporate purposes.

Company Overview and Performance

Founded in 2016, Wakefit has rapidly emerged as one of the leading organised players in India’s home and furnishings sector. It operates as a full-stack, vertically integrated brand, managing everything from product design and manufacturing to customer delivery and experience. 

The company distributes its products-ranging from mattresses to furniture, via its own website and COCO stores, as well as through third-party platforms. 

For the financial year ending March 31, 2024, Wakefit recorded revenues of ₹986.3 crore and ₹971 crore during the 9 months leading up to December 2024. Axis Capital, IIFL Capital Services, and Nomura are the Book Running Lead Managers for the proposed IPO, which is set to list on both BSE and NSE.

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Conclusion 

Wakefit’s IPO marks a strategic move to fuel its expansion and strengthen its market presence, signalling confidence in India’s growing home furnishings sector.

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