Wakefit Rolls Out IPO Plans, Targets to Raise INR 468 Cr

Wakefit Innovations Ltd, a home and furnishings company, has submitted preliminary documents to the Securities and Exchange Board (Sebi) requesting permission to acquire capital through an initial public offering (IPO).

According to the draft red herring prospectus (DRHP) submitted on June 26, the planned IPO of the Bengaluru-based company consists of an offer for sale (OFS) of 5.84 crore equity shares by the selling shareholders, along with a fresh issue of equity shares totalling up to INR 468.2 crore.

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 are among the selling shareholders as part of the OFS, along with the promoters Ankit Garg and Chaitanya Ramalingegowda.

How Wakefit Plans to Utilise Proceeds?

Wakefit plans to use the INR 82 crore proceeds from the new issue to open 117 new COCO Regular Stores and one COCO Jumbo Store; INR 15.4 crore to buy new machinery and equipment; and INR 145 crore to pay license fees and lease and sublease rent for already-existing stores.

The remaining sum would be utilised for regular business operations. In addition, INR 108.4 crore will go towards marketing and advertising costs to raise brand awareness and visibility.

Additionally, the business might think about doing a pre-IPO placement of up to INR 93.6 crore. By implementing such a placement, the size of the fresh issue will be reduced.

Wakefit’s Products and Business Operations

Founded in 2016, Wakefit is one of the newest domestic companies in India's home and furniture industry. The company distributes a variety of mattresses, furniture, and furnishings through both internal and external channels, including a number of marketplaces like multi-branded stores and major e-commerce platforms.

Its full-stack vertical integration allows it to manage all facets of business operations, from product conception, design, and engineering to manufacturing, distribution, and customer experience and engagement.

Two of Wakefit's five manufacturing facilities are located in Bengaluru, Karnataka; the other two are in Hosur, Tamil Nadu; and the fifth is in Sonipat, Haryana.

IPO Getting More Popular Among Startup Sector

Due to a robust IPO market and a resurgence of investor interest in tech equities, a number of technology businesses intend to go public in 2025.

Lenskart, an eyeglasses startup, has contacted investment banks to present for the mandate for its possible initial public offering (IPO), which may raise $1 billion. Groww, a stock broker, had selected five investment banks for a $1 billion initial public offering.

In the near future, startups like SoftBank-backed OfBusiness and contract maker Zetwek hope to raise $1 billion through initial public offerings (IPOs). Up to 25 firms hope to debut on the public market in 2025.

This comprises companies that aim for $500 million initial public offerings (IPOs), such as edtech company PhysicsWallah, AI unicorn Fractal, construction materials portal Infra.market, and leader in rapid commerce Zepto.

With solid institutional support and a broad range of digital payment and issuance tools designed for India's quickly digitising commerce sector, Pine Labs' initial public offering (IPO) is anticipated to be a notable fintech listing in 2025.