Wakefit: A Leading Home and Sleep Solutions Brand Going Public

Wakefit, a prominent brand in home and sleep solutions, is embarking on a significant journey to become a public entity, marking an important step towards its upcoming initial public offering (IPO).

Conversion to Public Company

The company’s board has given the green light to transform its name from Wakefit Innovations Private Limited to Wakefit Innovations Limited. This change aligns with its strategies for an anticipated debut on Indian stock markets soon.

IPO Plans and Financial Goals

Media sources indicate that Wakefit is gearing up to submit its draft red herring prospectus (DRHP) in the next few months, aiming to raise funds between Rs 1,500 crore and Rs 2,000 crore (around $200 million) through the public offering.

Strengthening the Governance Structure

To comply with regulatory standards, Wakefit has appointed Sudeep Nagar, Sandhya Pottigari, Aridam Paul, Gunender Kapur, and Alok Chandra Misra as independent directors. This move is intended to enhance its governance framework as it approaches its listing.

Company Evolution and Offerings

Established in 2016 by Ankit Garg and Chaitanya Ramalingegowda, Wakefit initially launched as a direct-to-consumer (D2C) mattress brand. Over time, it has expanded its scope to include a wide range of home solutions, such as furniture, decor, and interior design services. Its vertically integrated model—from production to delivery—has facilitated rapid growth in a competitive market.

Financial Performance

According to data from various startup intelligence platforms, Wakefit’s operational revenue experienced a 21% increase, reaching Rs 986.4 crore in FY24 compared to Rs 812.6 crore in FY23. Additionally, the company’s losses were significantly reduced by nearly 90%, decreasing to Rs 15 crore in FY24 from Rs 145 crore in the previous year.

Investment and Competitive Landscape

To date, Wakefit has secured over $100 million (approximately Rs 850 crore) in funding from various investors, including Peak XV Partners, Verlinvest, and South Korea’s Paramark Ventures. Some of these backers may look to partially divest their stakes during the IPO.

In the burgeoning furniture and sleep products market in India, Wakefit competes against both traditional and emerging brands, including IKEA, Pepperfry, Duroflex, SleepyCat, and WoodenStreet.