D2C furniture and mattress startup Wakefit has filed its draft red herring prospectus (DRHP) with the markets regulator SEBI to raise INR 468 Cr (around $54.6 Mn) via fresh issue of shares.
The initial public offering (IPO) will also comprise an offer for sale (OFS) of up to 5.8 Cr equity shares.
Wakefit's promoters Ankit Garg and Chaitanya Ramalingegowda, along with its backers, including Peak XV Partners, Redwood Trust, Paramark and Verlinvest, among others, will offload shares via OFS route.
Notably, the company is also considering a pre-IPO placement of INR 93.6 Cr, which will result in reduction in the fundraise via fresh issue.
The company is mulling to utilise the fresh funds in expanding its retail store network by setting up 117 new stores. Besides, it is also looking to spend on marketing and advertisement.
The DRHP has been filed over two weeks after the company turned into a public entity.
Founded in 2016 by Garg and 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.
The startup operates via an omnichannel network by selling products online and through its retail stores. It has also partnered with ecommerce marketplaces, including Amazon and Flipkart to sell its products.
Garg and Ramalingegowda will be diluting up to 77.3 Lakh and 44.5 Lakh equity shares, respectively.
Apart from that, the OFS will include offloaded shares from Wakefit's other backers as mentioned below
On the financial front, the company recorded a revenue INR 971 Cr from operations in the first nine months of FY25. Meanwhile its net loss stood at INR 8.8 Cr during the period under review.
Notably, the company has not given financial results for the January quarter of the financial year ended in March 2025 (Q4 FY25).
In FY24, it managed to trim its net loss by 90% to INR 15.05 Cr from INR 145.68 Cr in the previous fiscal year, on the back of top line growth and improved margins. Meanwhile, its revenue from operations jumped 21% to INR 986.35 Cr from INR 812.62 Cr in FY23.
Wakefit claims that it gets more than 68.8% of its revenue from the online channels, including its own website and ecommerce marketplaces.