Wakefit Innovations’ upcoming IPO comes on the back of steady growth in revenue, a sharp clean‑up of its losses, and a clear capex plan focused on expanding its offline footprint and brand visibility. The Bengaluru‑based home and furnishings company will open its issue on December 8 and close on December 10, with a ₹377.1‑crore fresh issue and an OFS of 4.67 crore shares by promoters and key investors. Anchor investors are slated to come in on December 5.
Financial track record of Wakefit
Wakefit has grown from a D2C mattress startup into a broader sleep and home‑solutions brand with over ₹1,000‑crore annual income as of FY24. Revenue from operations has compounded at roughly 25%+ CAGR between FY22 and FY24.
Annual performance
| Metric | FY22 | FY23 | FY24 | FY25 (full year) |
|---|---|---|---|---|
| Revenue from operations | ₹632.6 cr | ₹812.6 cr | ₹986.4 cr | ₹1,274 cr |
| Total income | ₹637.0 cr | ₹820.0 cr | ₹1,017.3 cr | ₹1,305 cr |
| Profit / (loss) after tax | -₹106.5 cr | -₹145.7 cr | -₹15.1 cr | -₹35.0–36.0 cr* |
*FY25 loss widened again due to higher input and marketing costs, despite revenue growth; PAT estimate based on FY25 filings.
Recent momentum
- For 9M FY25, Wakefit clocked ₹971.1 crore in revenue with a sharply reduced net loss of ₹8.8 crore, indicating improving unit economics and near‑breakeven operations.
- For H1 FY26 (six months to September 30, 2025), revenue from operations stood at ₹724 crore with profit of ₹35.5 crore, showing that profitability has finally turned positive on a half‑year basis.
- FY25 operating revenue of ₹1,274 crore marked about 30% YoY growth over FY24’s ₹986 crore, with total expenditure rising nearly 30% driven by raw materials and employee costs.
Margins have improved materially from deep negatives in FY22–23 to mid‑single‑digit positive EBITDA in 9M FY25, and cash flows from operations turned positive in FY24 and 9M FY25, signalling healthier working capital and better cost control.
IPO structure, use of proceeds and ownership
The IPO combines a fresh issue of equity shares of up to ₹377.1 crore and an OFS of 4.67 crore shares by promoters Ankit Garg and Chaitanya Ramalingegowda as well as existing investors Nitika Goel, Peak XV Partners, Redwood Trust, Verlinvest, SAI Global India Fund I LLP, Investcorp Growth Equity Fund, Investcorp Growth Opportunity Fund, and Paramark KB Fund I.
Fresh‑issue proceeds are earmarked as follows:
- ₹31 crore – Set‑up of 117 new company‑owned, company‑operated (COCO) regular stores.
- ₹15.4 crore – Purchase of new equipment and machinery.
- ₹161.4 crore – Lease, sub‑lease rentals and licence fees for existing stores.
- ₹108.4 crore – Marketing and advertising to strengthen brand awareness.
- Balance – General corporate purposes.
In a pre‑IPO round earlier in November, Wakefit raised ₹56 crore from DSP India Fund and 360 ONE Equity Opportunities Fund at a valuation of about ₹6,408 crore, via a placement of 28.7 lakh shares at ₹195 per share. Post‑placement, promoters hold ~43.5% while Peak XV (~22.7%), Verlinvest (~9.9%), Investcorp (~9.4%) and Elevation Capital (~4.7%) are the largest institutional shareholders.
According to DRHP and deal trackers, Wakefit has cumulatively raised over $145 million and ₹7,750 crore equivalent across multiple rounds from investors including Sequoia (now Peak XV), Verlinvest, Investcorp and others, with a major Series D of ₹320 crore led by Investcorp in February 2023 to expand retail and manufacturing.
Business model, footprint and operations
Founded in 2016, Wakefit is one of India’s fastest‑growing, vertically integrated home and sleep‑solutions brands, offering mattresses, pillows, bedding, furniture and home accessories across both online and offline channels. It sells via:
- Own channels – Wakefit website and a growing COCO store network.
- External channels – Marketplaces such as Amazon , Flipkart (Walmart group) and multi‑brand outlets.
The company operates five manufacturing facilities: two in Bengaluru (Karnataka), two in Hosur (Tamil Nadu) and one in Sonipat (Haryana), equipped with imported machinery like robotic arms and roller belts to improve throughput and reduce wastage. It positions itself as a “full‑stack” player controlling design, engineering, manufacturing, distribution and customer experience end‑to‑end.
Competitive landscape
Wakefit plays in India’s broader mattress and sleep‑wellness market, expected to reach about USD 3.65 billion by 2030 at an 8.8% CAGR. Key competitors span legacy and D2C brands:
Wakefit differentiates itself via:
- Strong D2C DNA with omnichannel distribution,
- In‑house product development and manufacturing for mattresses and furniture,
- Marketing centred on value‑for‑money and ergonomic sleep solutions.
Outlook
Wakefit enters the public markets with four‑year revenue CAGR near 25%, a recently turned profit trajectory in H1 FY26, and a clear plan to expand COCO stores and brand visibility using IPO proceeds. At the same time, competition from entrenched mattress majors and capital‑rich furniture platforms remains intense, and FY25’s widening full‑year loss underlines that sustained profitability is still work‑in‑progress.
Read this: After Lenskart, Wakefit Gets SEBI Approval for IPO.
