Wakefit to raise ₹468 crore via IPO; plans to expand Coco stores

Wakefit plans to raise Rs 468.2 crore via IPO, with a fresh issue and partial exit by promoters and investors as it expands store network and marketing efforts

Wakefit Innovations Ltd, India’s largest direct-to-consumer (D2C) home and furnishings brand, has filed a draft red herring prospectus with the Securities and Exchange Board of India (SEBI), laying the groundwork for an initial public offering (IPO).

 

The Bengaluru-based company plans to raise up to Rs 468.2 crore through a fresh issue of equity shares, according to the filing. The offering also includes a secondary sale of 58.4 million shares by existing shareholders, marking a partial exit for the company’s founders and early backers.

 

Promoters Ankit Garg and Chaitanya Ramalingegowda will participate in the offer for sale (OFS), along with a clutch of institutional investors, including Peak XV Partners, Verlinvest SA, Investcorp funds, Redwood Trust and Paramark KB Fund I, among others.

 

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Among the company’s promoters, co-founder Ankit Garg holds the largest individual stake at 33.38 per cent, with fellow co-founder Chaitanya Ramalingegowda owning 10.09 per cent. 

 

Peak XV Partners is the company’s largest external shareholder, holding a 22.7 per cent stake. Verlinvest and Investcorp follow with 9.89 per cent and 9.39 per cent, respectively. SAI Global Investment owns 5.35 per cent, while Elevation Capital and Paramark Fund hold 4.73 per cent and 1.65 per cent, respectively.

 

Wakefit proposes to utilise the net proceeds from the fresh issue towards capital expenditure worth Rs 82 crore for setting up 117 new Coco (company-owned, company-operated) regular stores and one Coco jumbo store; and Rs 15.4 crore towards capital expenditure for the purchase of new equipment and machinery. It will use Rs 145 crore for lease, sub-lease rent and licence fee payments for existing stores. About Rs 108.4 crore has been allocated towards marketing and advertisement expenses for enhancing brand awareness and visibility. The remaining amount will be used for general corporate purposes.

 

The company may consider a pre-IPO placement aggregating up to Rs 93.6 crore prior to the filing of the red herring prospectus with the Registrar of Companies. If the pre-IPO placement is undertaken, the fresh issue size will be reduced accordingly.

 

Founded in 2016, Wakefit has grown into a major player in India’s online mattress and home solutions segment, riding a wave of consumer shift towards digital-first brands, analysts say. The IPO will test public appetite for high-growth, loss-moderating consumer start-ups, as Indian equity markets continue to see strong investor interest. Wakefit is a fast-growing domestic player in the home and furnishings market in India, and among organised peers to achieve a total income of more than Rs 1,000 crore as of March 31, 2024. 

 

It offers a wide range of mattresses, furniture and furnishings through both its own channels (including its website and Coco stores) and external channels (such as major e-commerce platforms and multi-branded outlets). It is a full-stack, vertically integrated company, enabling it to control every aspect of operations—from conceptualising, designing and engineering products to manufacturing, distributing, and delivering customer experience and engagement.

 

Wakefit operates five manufacturing facilities—two in Bengaluru, Karnataka, two in Hosur, Tamil Nadu, and one in Sonipat, Haryana. Its facilities are equipped with imported machinery and automation technologies, such as robotic arms and roller belts, which streamline the production process and reduce waste.

 

The firm reported revenue from operations of Rs 986.3 crore in FY24 and Rs 971 crore for the nine-month period ended December 31, 2024.

 

India’s home and furnishings market is broadly classified into three key categories—furniture, mattresses, and furnishings and décor, experts say. The market is estimated to be approximately Rs 2.8 lakh crore as of calendar year 2024 and is projected to grow at a CAGR of 13 per cent to reach Rs 5.9 lakh crore by calendar year 2030, fuelled by the growth of organised retail, rising online dominance and premiumisation.

 

Axis Capital Ltd, IIFL Capital Services Ltd and Nomura Financial Advisory and Securities (India) Pvt Ltd are the book running lead managers to the issue. The equity shares of the company are proposed to be listed on the BSE and NSE.