The Bengaluru-based company’s IPO comprises a fresh issue of equity shares worth up to ₹468 crore and an offer for sale (OFS) of 5.83 crore equity shares by existing shareholders.
Under the OFS, promoters Ankit Garg and Chaitanya Ramalingegowda, along with other shareholders including Nitika Goel, Peak XV Partners Investments VI, Redwood Trust, Verlinvest SA, SAI Global India Fund I LLP, Investcorp Growth Equity Fund, Investcorp Growth Opportunity Fund, and Paramark KB Fund I, will offload shares.
The net proceeds from the fresh issue will be used for capital expenditure of ₹82 crore to set up 117 new COCO – Regular Stores and one COCO – Jumbo Store; ₹15.4 crore for purchasing new equipment and machinery; ₹145 crore for lease, sub-lease rent, and license fee payments for existing stores; ₹108.4 crore for marketing and advertising to enhance brand visibility. The remaining amount will be used for general corporate purposes.
The company may also consider a pre-IPO placement of up to ₹93.6 crore, in consultation with the book-running lead managers (BRLMs), prior to filing the red herring prospectus with the Registrar of Companies (RoC). If undertaken, the size of the fresh issue will be reduced accordingly.
According to a Redseer report, Wakefit is the largest D2C home and furnishings brand in India by revenue in FY24.
It competes with Premji Invest-backed The Sleep Company, Westbridge-funded WoodenStreet, global retail giant IKEA and others in a fast-growing market.
Founded in 2016, Wakefit is the fastest-growing homegrown player in India’s organised home and furnishings segment to surpass ₹1,000 crore in total income as of March 31, 2024.
Its product range includes mattresses, furniture, and furnishings, sold through its own channels (website and COCO stores) and external platforms, including e-commerce marketplaces and multi-brand outlets.
The company operates five manufacturing facilities, two in Bengaluru, two in Hosur (Tamil Nadu), and one in Sonipat (Haryana).
Wakefit reported revenue from operations of ₹986 crore in FY24 and ₹971 crore in the nine months ended December 31, 2024.
Axis Capital, IIFL Capital Services, and Nomura Financial Advisory and Securities (India) are the book-running lead managers to the issue. The company plans to list its equity shares on both the BSE and NSE.
