Startup Wakefit, known for sleep and home solutions, is gearing up to enter the stock market.
The company has begun preparations for its Initial Public Offering (IPO) and has hired Axis Capital, IIFL Capital Services, and Nomura as investment bankers, sources told.
IPO Size Likely Between ₹1,500 to ₹2,000 Crore
According to the sources, Wakefit plans to raise between ₹1,500 crore to ₹2,000 crore (around $200 million) through the IPO.
While the draft red herring prospectus (DRHP) is yet to be filed, the process has begun.
The IPO will likely include both fresh equity and an Offer for Sale (OFS). However, the exact size of the OFS — where early investors may exit partially or fully — is still being finalized.
Wakefit’s Funding and Growth Journey
So far, Wakefit has raised over $100 million (₹850 crore) from investors like:
Peak XV Partners
Paramark Ventures (South Korea)
Verlinvest (Europe)
Founded in 2016 by Ankit Garg and Chaitanya Ramalingegowda, Wakefit started with mattresses but later expanded into beds, tables, chairs, and other home furnishings.
Strong Revenue Growth and Reduced Losses
FY20 Revenue: ₹199 crore
FY24 Revenue: ₹1,017 crore
FY23 Loss: ₹146 crore
FY24 Loss: ₹15 crore
The company has seen rapid revenue growth and a significant reduction in losses, showing a strong path to profitability.
Competitive Market & IPO Momentum
Wakefit competes with brands like The Sleep Company, WoodenStreet, and IKEA. With rising demand in the home furnishing space, Wakefit is well-positioned for growth.
In the IPO space, 2024 saw a major surge, with 13 startups (including Swiggy, Mobikwik, and Ola Electric) raising over ₹29,000 crore ($3.4 billion).
This was a sharp jump compared to 5 IPOs in 2023 and just 2 in 2022.
Big IPOs Lined Up for 2025
At least 25 startups are expected to go public in 2025. Major names like Flipkart (Walmart-owned), OYO, and PhonePe are also expected to file for IPOs in the coming years.
