Direct-to-consumer (D2C) sleep and home solutions company Wakefit has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), officially setting the stage for its much-anticipated initial public offering (IPO). The filing offers a comprehensive look at Wakefit’s financial performance for the nine-month period ending December 2024 (9M FY25), showcasing a company that is inching toward profitability while maintaining steady revenues.
According to the DRHP, Wakefit reported a net loss of INR 8.8 crore for the 9M FY25 period, a significant improvement compared to the full-year loss of INR 15 crore reported in FY24. This decline in losses is a positive signal for potential investors, suggesting that Wakefit is successfully implementing cost control measures or experiencing improved margins amid a challenging consumer environment.
Wakefit’s revenue from operations stood at INR 971 crore in the first nine months of FY25, already approaching the INR 986.3 crore figure reported for the entire FY24. Including other income of INR 23 crore, Wakefit’s total income for the 9M FY25 period reached INR 994 crore, inching close to the INR 1,017 crore total income it generated in FY24. These figures indicate a relatively stable top line, reinforcing investor confidence in the company’s market presence and customer loyalty within the competitive D2C furniture and sleep solutions segment.
As per the DRHP, the IPO will consist of a fresh issue worth up to INR 468.2 crore and an Offer for Sale (OFS) of up to 5.8 crore shares. The OFS will allow existing shareholders and promoters to partially exit their holdings. Founders Ankit Garg and Chaitanya Ramalingegowda, along with institutional backers such as Peak XV Partners (formerly Sequoia Capital India), Redwood Trust, Paramark Ventures, and Belgium-based Verlinvest, will be offloading a portion of their stakes in the OFS component.
The fresh capital raised through the IPO is likely to be deployed toward business expansion, brand building, technological upgrades, and possibly reducing liabilities. Wakefit has emerged as a key player in India’s growing online furniture and home solutions space, driven by the increasing adoption of e-commerce and shifting consumer preferences for affordable, ergonomic, and aesthetically appealing home products.
Founded in 2016, Wakefit has built a strong brand around mattresses, sleep accessories, and modular furniture, with a robust digital-first approach. The company’s ability to maintain revenue momentum while cutting down losses signals operational maturity—a factor that could resonate well with investors in the public markets.
The IPO will be closely watched, not only because of Wakefit’s strong consumer brand but also as a bellwether for the broader D2C ecosystem in India. If the offering sees strong investor interest, it could pave the way for other D2C brands looking to tap public capital markets in the coming months.
