As Wakefit prepares for its ₹468 Cr Initial Public Offering (IPO), co-founders Ankit Garg and Chaitanya Ramalingegowda have bolstered their equity stake by purchasing 26 lakh equity shares through a rights issue, as revealed in the company’s Draft Red Herring Prospectus (DRHP).
This strategic decision comes right on the heels of the D2C home and sleep solutions brand transitioning into a public company. The share allotment highlights the founding team’s long-term dedication and faith in Wakefit’s business as it steps into the public markets. The IPO will feature a fresh issue of ₹468 Cr along with an Offer for Sale (OFS) of 5.84 Cr equity shares from various institutional investors, including Peak XV Partners, Verlinvest, SAI Global, and Redwood Trust.
Founded in 2016, Wakefit provides a diverse array of home improvement and sleep products, such as mattresses, pillows, bed frames, and furniture, available through both online platforms and an expanding offline presence. The company has teamed up with major e-commerce giants like Amazon and Flipkart.
According to the DRHP, Wakefit reported ₹971 Cr in revenue for the first nine months of FY25, with a reduced net loss of ₹8.8 Cr, showcasing improved financial management. The company intends to use the funds from the fresh issue to open 117 new stores, ramp up marketing efforts, and boost brand visibility.
With its consistent growth and the founders’ commitment through increased equity, Wakefit is well-positioned as a strong player in India’s evolving D2C landscape as it approaches its stock market debut.