Wakefit Eyes Over $200 Mn IPO, Picks Three Bankers

SUMMARY

Wakefit has roped in Axis Capital, IIFL Capital Services and Nomura as bankers for its IPO

The startup is looking to raise around INR 1,500-2,000 Cr via IPO

However, the Peak XV-backed startup has not yet finalised the split of its fresh issue and offer-for-sale (OFS) component

Bengaluru-based D2C furniture and mattress startup Wakefit is reportedly looking to make a splash in the market with an initial public offering (IPO) and aims to raise around INR 1,500-2,000 Cr (around $173-231 Mn).

A Moneycontrol report said that the startup has also picked three investment bankers – Axis Capital, IIFL Capital Services and Nomura — for the IPO.

However, the company has not yet finalised the split between fresh issue and offer-for-sale (OFS) component.

Wakefit declined to comment on queries sent by Inc42.

Founded in 2016 by Ankit Garg and Chaitanya Ramalingegowda, Wakefit is a D2C mattress and furniture startup which sells products such as mattresses, pillows, bed frames and mattress protectors with an aim to give a better sleeping experience to its customers. Besides, it also offers home decor and furniture which includes sofas, study tables, bookshelves, shoe racks and TV units, among others.

The startup counts the likes of Peak XV, Investcorp, Verlinvest and SIG among its investors and reportedly raised more than $100 Mn since its inception. On the financial front, it managed to trim its net losses on the back of its rising revenues in the financial year ending March 31, 2024 (FY24).

Wakefit cut down its net losses by 90% to INR 15.05 Cr in FY24 from INR 145.68 Cr in the previous fiscal year. While its revenue from operations jumped 21% to INR 986.35 Cr for the period under review from INR 812.62 Cr in FY23.

The startup competes with other major players in India’s mattress industry namely The Sleep Company, Duroflex, Kurlon and Sleepwell. These players are locking horns to grab their share in the said sector which is projected to reach $3.2 Bn by 2029.

The development comes at a time when a host of Indian startups are at various stages to get listed on bourses.

According to Inc42’s IPO tracker, Wakefit will join the league of as many as 23 startups who have set ball rolling for their IPO. Out of these, 11 have already submitted the draft red herring prospectuses (DRHPs) with SEBI which includes the likes of Ather Energy, ArisInfra and Avanse Financial Services among others.

Two days back, jewellery startup BlueStone and NBFC Aye Finance received a go ahead from the regulatory body for their IPO.