Wakefit’s Plans for IPO with Investment Banks

Wakefit, a prominent home furniture and sleep solutions company, has chosen three investment banks to assist with its public offering strategy.

Investment Banking Partners for Wakefit

According to a report by Moneycontrol, Wakefit has selected Axis Capital, IIFL Capital Services, and Nomura as its advisors for the initial public offering (IPO). These firms will provide guidance throughout the IPO process.

Upcoming Draft Filing and Financial Goals

Wakefit is expected to submit its draft papers for the IPO in the coming months. The company aims to generate between Rs 1,500 crore and Rs 2,000 crore (approximately $200 million). However, the breakdown between new share issuance and current investor share sales remains undecided.

Previous Funding and Current Investors

To date, Wakefit has successfully obtained over $100 million (around Rs 850 crore) from various investors, including Peak XV Partners, South Korea’s Paramark Ventures, and European firm Verlinvest. Some of these early-stage investors may consider selling their shares during the IPO.

Evolution of Wakefit’s Product Offering

Initially focused as a mattress retailer, Wakefit has expanded its portfolio to include a variety of furniture, such as beds, tables, and chairs.

Financial Performance and Revenue Growth

Reports indicate that Wakefit’s operational revenue surged by 21%, reaching Rs 986.4 crore in FY24 compared to Rs 812.6 crore the previous fiscal year. Furthermore, the firm significantly improved its loss management, reducing losses by 90% to Rs 15 crore from Rs 145 crore in FY23.

Competitive Landscape in the Market

In the competitive Indian market for furniture and sleep products, Wakefit faces rivalry from brands such as SleepyCat, Duroflex, Pepperfry, IKEA, and Woodenstreet.