Wakefit Announces Dec 8 IPO, Looks to Raise INR 377 Crore from Fresh Issue

Wakefit Innovations, a home and furniture company, plans to issue new shares valued at INR 377 crore as part of its first public offering (IPO) on December 8. According to the red herring prospectus (RHP), the Bengaluru-based company's initial public offering (IPO) will end on December 10, and shares will be distributed to anchor investors on December 5.

A new issue of equity shares of INR 377.1 crore and an offer-for-sale (OFS) of 4.67 crore shares by the selling shareholders make up the company's first public offering. Together with other selling shareholders Nitika Goel, Peak XV Partners Investments VI, Redwood Trust, Verlinvest S.A., SAI Global India Fund I LLP, Investcorp Growth Equity Fund, Investcorp Growth Opportunity Fund, and Paramark KB Fund, the OFS includes promoters Ankit Garg and Chaitanya Ramalingegowda. Shares will be offloaded by me.

How Wakefit Plans to Utilise Proceeds?

Wakefit plans to use the INR 31 crore proceeds from the new issue to open 117 new COCO Regular Stores, INR 15.4 crore to buy new machinery and equipment, and INR 161.4 crore to pay licence fees and lease and sublease rent for already-existing stores.

In addition, INR 108.4 crore would go towards marketing and advertising costs to raise brand knowledge and exposure, with the rest sum going towards regular business needs. In a pre-IPO investment round earlier this month, Wakefit secured INR 56 crore from the 360 ONE Equity Opportunities Fund and the DSP India Fund. The issue's book-running lead managers are Axis Capital, IIFL Capital Services, and Nomura Financial Advisory and Securities (India) Private Ltd. The equity shares are intended to be listed on the BSE and NSE.

Wakefits’ Financial Dynamics and Business Operations

Among its organised peers, Wakefit, which was formed in 2016, is one of the fastest-growing domestic players in the Indian home and furnishings market to reach a total revenue of over INR 1,000 crores as of March 31, 2024. It sells a variety of mattresses, furniture, and furnishings through several channels, including external markets like major e-commerce platforms and multi-branded stores, as well as its own channels, which include the website and COCO Stores.

Because it is a full-stack vertically integrated business, it can manage every facet of operations, from product conception, design, and engineering to manufacturing, distribution, and customer interaction and experience. Five production facilities are run by Wakefit, with two located in Bengaluru, Karnataka, two in Hosur, Tamil Nadu, and one in Sonipat, Haryana.

Imported equipment and automation technologies, like robotic arms and roller belts, are installed at its facilities to improve production efficiency and cut waste. For the six months ending September 30, 2025, Wakefit recorded operating revenue of INR 724 crore and profit of INR 35.5 crore.