Wakefit Announces IPO Plans with Investment Banks for Furniture and Sleep Solutions

Wakefit, a prominent player in home furniture and sleep solutions, has appointed three investment banks to assist in its plans for an initial public offering (IPO). The investment banks selected are Axis Capital, IIFL Capital Services, and Nomura as reported by Moneycontrol.

Details of Wakefit’s Upcoming IPO

The company is preparing to submit draft documents for the IPO in the upcoming months. According to the report, Wakefit is looking to secure an amount between Rs 1,500 crore and Rs 2,000 crore, which is approximately $200 million. The specifics regarding the proportion of funds raised through new shares versus shares sold by existing investors have yet to be determined.

Previous Funding and Investor Insights

To date, Wakefit has successfully raised over $100 million (about Rs 850 crore) from various investors, including Peak XV Partners, South Korean firm Paramark Ventures, and European entity Verlinvest. It is likely that some of these initial investors will consider divesting their shares during the IPO.

Growth of Wakefit in the Industry

Initially focused on mattresses, Wakefit expanded its product line to include a variety of furniture, such as beds, tables, and chairs. As per different sources, the revenue from operations increased by 21% to Rs 986.4 crore for FY24, compared to Rs 812.6 crore in the previous fiscal year. Additionally, the company adeptly reduced its losses by 90%, bringing them down to Rs 15 crore from Rs 145 crore in FY23.

Market Competitors

In the competitive landscape of India’s furniture and sleep product market, Wakefit faces rivals like SleepyCat, Duroflex, Pepperfry, IKEA, and Woodenstreet.