Wakefit, a leading home and sleep solutions brand, is about to convert into a public company, which is an important step towards its eventual initial public offering IPO in India.
- Wakefit to transition into a public company ahead of its planned IPO to raise Rs. 2,000 crore.
- Wakefit Innovations reports 90 percent drop in losses and 21 percent revenue growth in FY24 ahead of listing.
- Direct-to-consumer brand Wakefit gears up for IPO, strengthens governance with new independent directors.
Per regulatory filings, it appears the company board has passed a resolution to change its name from Wakefit Innovations Private Limited to Wakefit Innovations Limited. This conversion is consistent with the companies upcoming plans to launch on the Indian stock exchanges.
As reported in the media, Wakefit’s IPO filing will include a draft red herring prospectus (DRHP) in the next few months, intending to raise Rs. 1,500–2,000 crore ($200 million) by going public.
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To meet corporate governance, the company has also appointed Sudeep Nagar, Sandhya Pottigari, Aridam Paul, Gunender Kapur and Alok D Chandra Misra as independent directors to bolster the board and governance framework, as the company transitions to a listed company.
Founded in 2016, by Ankit Garg and Chaitanya Ramalingegowda, Wakefit began its digital existence as a D2C mattress brand, and built itself into a home solutions brand providing the full solution from furniture, decor, and interior design services. With a vertically integrated operation from manufacturing to delivery, it has been able to rapidly scale in India’s home furnishings market.
Wakefit reported a 21 percent revenue growth from operations in FY24 to Rs. 986.4 crore, compared to Rs. 812.6 crore in FY23, while losses falling by roughly 90 percent to Rs. 15 crore from Rs. 145 crore in the prior year.
Wakefit has raised over $100 million (around Rs 850 crore), to date from Peak XV Partners, Verlinvest and Paramark Ventures, based in South Korea, with some of these funds likely to enable these investors to partially exit through the IPO.
Wakefit has a range of competitors in the India’s furniture and sleep products market in India, including IKEA, Pepperfry, Duroflex, SleepyCat, and WoodenStreet, encompassing both traditional and new-age players.
