Wakefit Innovations Files DRHP for ₹4,682 Million IPO; Key Investors to Offload 58.4 Million Shares
By Shishta Dutta | Updated at: Jan 14, 2026 12:19 PM IST
Bengaluru, June 27: Wakefit Innovations Limited, a prominent omnichannel home and sleep solutions company, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The company aims to raise ₹4,682.21 million (approximately ₹468.22 crore) through a combination of a fresh issue of equity shares and an Offer for Sale (OFS) by existing shareholders, marking its path towards a public listing on the BSE and NSE.
IPO Structure
The IPO will comprise a fresh issue of equity shares amounting to up to ₹4,682.21 million. Alongside this, an Offer for Sale will involve the divestment of up to 58,399,085 equity shares by existing shareholders. The combined promoter stake sale amounts to 12.18 million shares, indicating a partial exit by the founders.
Key Offer Details
| Component | Details |
|---|---|
| Fresh Issue | Up to ₹4,682.21 million |
| Offer for Sale | Up to 58,399,085 equity shares |
| Total Issue Size | Not disclosed (will depend on final price) |
| Face Value | ₹1 per equity share |
| Promoter Stake Sale | Ankit Garg – 7.73 millionChaitanya Ramalingegowda – 4.45 million |
| Institutional Investors Selling Stake | Peak XV Partners – 25.06 million, Verlinvest – 10.19 million, Investcorp Funds – 6.18 million |
Use of Proceeds
The company intends to use the net proceeds from the fresh issue for the following purposes:
| Objective | Amount (₹ million) |
|---|---|
| Setting up 117 new COCO – Regular Stores and 1 COCO – Jumbo Store | 821.55 |
| Lease rent/license fee payments for existing stores | 1,451.99 |
| Purchase of new machinery & equipment | 154.08 |
| Brand marketing & advertising | 1,084.04 |
| General corporate purposes | Balance to be finalised |
Wakefit Innovations also has the option to undertake a pre-IPO placement of up to ₹936.44 million. If this placement is completed, the size of the fresh issue in the main IPO will be reduced by that corresponding amount.
Financial Highlights and Industry Context
Despite experiencing robust revenue growth, Wakefit Innovations has remained a loss-making entity in recent fiscal periods. The reported losses are primarily due to significant investments in expansion-related depreciation, substantial marketing and advertising expenditures, and lease costs associated with building out its omnichannel presence.
| Particulars | 9M FY25 | FY24 | FY23 | FY22 |
|---|---|---|---|---|
| Revenue from Operations | ₹9,710.86 mn | ₹9,863.53 mn | ₹8,126.20 mn | ₹6,325.87 mn |
| Net Loss | ₹88.09 mn | ₹150.53 mn | ₹1,456.83 mn | ₹1,065.20 mn |
| Net Worth | ₹5,465.23 mn | ₹5,436.06 mn | ₹5,050.79 mn | ₹3,413.41 mn |
| Return on Net Worth (%) | (1.61%) | (2.77%) | (28.84%) | (31.21%) |
Shareholding and Corporate Governance
Post-IPO, Wakefit’s equity shareholding will see further dilution. Currently, promoters Ankit Garg and Chaitanya Ramalingegowda collectively hold 43.47% on a fully diluted basis. Key institutional shareholders include Peak XV Partners (22.70%), Verlinvest (9.89%), Investcorp Growth Equity Fund (8.29%), and Elevation Capital VIII (4.73%). The company’s board comprises nine directors, including five independent directors and two promoter-executives. Surbhi Sharma serves as the Company Secretary and Compliance Officer.
Key Risks
Key risks highlighted in the DRHP include the company’s consistent net losses, a high dependence on the mattress category for revenue, and reliance on its own sales channels (website and COCO stores). Additionally, the company has disclosed 19 ongoing tax proceedings and two criminal cases against the company and its directors, which could pose contingent liabilities.
Industry Context
Wakefit operates in India’s home and furnishings segment, with primary products being mattresses (62.2% of FY25 9M revenue), furniture (26.8%), and furnishings (10.9%). The total addressable market in this space is projected to reach ₹5.2–5.9 trillion by 2030 from ₹2.8–3.0 trillion in 2024, per the Redseer report cited in the DRHP.
What’s Ahead For Wakefit?
Wakefit’s IPO journey now hinges on regulatory approvals and market sentiment. The company will aim to reassure investors about its path to profitability while highlighting its strong revenue growth and market potential. A successful listing could help Wakefit fund its offline expansion and brand-building efforts, but investor response will likely depend on how it addresses sustained losses and legal disclosures.
About Wakefit
Founded in 2016 and headquartered in Bengaluru, Wakefit Innovations Limited is a vertically integrated, omnichannel home and sleep solutions company. Its product range includes mattresses, furniture, furnishings, and sleep tech devices. Wakefit operates five manufacturing units across Karnataka, Haryana, and Tamil Nadu and sells via its website, COCO (Company-Owned Company-Operated) stores, marketplaces, and MBOs.
The equity shares will be listed on both the NSE and BSE after regulatory approvals and finalisation of the offer price.
REF: https://nsearchives.nseindia.com/corporate/Registration_27062025055322_DRHP.pdf
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