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Wakefit Innovations Ltd, one of India’s leading direct-to-consumer (D2C) brands in the home and furnishings segment, is preparing to raise ₹468.2 crore through an initial public offering (IPO), according to its draft red herring prospectus filed with the Securities and Exchange Board of India (SEBI).
The IPO will include a fresh issue of equity shares as well as an offer for sale (OFS) of 5.84 crore shares by existing shareholders, including co-founders Ankit Garg and Chaitanya Ramalingegowda, and early institutional investors such as Peak XV Partners, Verlinvest SA, Investcorp, Redwood Trust, and Paramark KB Fund I.
Ankit Garg, who holds a 33.38% stake, is currently the largest individual shareholder among the promoters, followed by Ramalingegowda with 10.09%. Peak XV Partners leads external investors with a 22.7% stake, while Verlinvest and Investcorp own 9.89% and 9.39%, respectively.
Wakefit intends to use ₹82 crore from the proceeds to establish 117 new Coco (company-owned, company-operated) stores and one large-format Coco jumbo store. An additional ₹15.4 crore is earmarked for equipment and machinery purchases, ₹145 crore for lease and rent-related expenses, and ₹108.4 crore for marketing and brand-building initiatives. Remaining funds will support general corporate needs.
The company may also explore a pre-IPO placement of up to ₹93.6 crore, which could reduce the size of the fresh issue if executed before filing with the Registrar of Companies.
Founded in 2016, Wakefit has grown into a major digital-first brand, offering mattresses, furniture, and home décor products through its website, Coco stores, and popular e-commerce platforms. The vertically integrated firm operates five manufacturing units across Karnataka, Tamil Nadu, and Haryana, featuring advanced automation technologies.
For FY24, Wakefit reported operational revenue of ₹986.3 crore and recorded ₹971 crore during the nine months ending December 31, 2024. The company is among the few organised players in the Indian home and furnishings space to surpass ₹1,000 crore in total income.
The Indian home and furnishings market is expected to grow from ₹2.8 lakh crore in 2024 to ₹5.9 lakh crore by 2030, driven by rising online adoption, premiumisation, and organised retail growth.
Axis Capital, IIFL Capital, and Nomura are the lead managers for the IPO, with plans to list the equity shares on both the BSE and NSE.
