Wakefit raises ₹580 crore from anchors, ₹186 crore from Steadview, WhiteOak & Capital 2B ahead of IPO launch

Bengaluru-based Wakefit Innovations has secured ₹580 crore from anchor investors ahead of its initial public offering (IPO), which opens today. The company, which competes with the likes of The Sleep Company, Duroflex, Kurlon, and Sleepwell in the mattress and home décor market, allotted 2,97,43,590 shares at the upper end of the price band at ₹195 each, as per a filing on the BSE.

The anchor allocation garnered strong interest from a mix of global and domestic institutions. HDFC Life Insurance, Bajaj Life Insurance, Prudential Hong Kong, 360 One, Steadview Capital and Amundi Funds New Silk Road. Several mutual funds such as HDFC MF, Axis MF, Mirae Asset MF, Nippon India MF, Tata MF, HSBC MF, Bandhan MF, Edelweiss MF and Mahindra Manulife MF participated in the anchor book through multiple schemes.

In a separate secondary transaction completed earlier this week, Wakefit raised an additional ₹186 crore from Steadview Capital, WhiteOak Capital, InfoEdge and Temasek-backed Capital 2B. Steadview Capital Mauritius, WhiteOak Capital and Capital 2B together bought 95.57 lakh shares at ₹195 per share from existing investors Peak XV Partners, Redwood Trust and Verlinvest SA. Steadview invested ₹101 crore, WhiteOak deployed ₹72 crore and Capital 2B contributed ₹13 crore.

The ₹1,289 crore IPO of Wakefit will close on December 10 , while the allotment of shares is expected to be finalised on December 11. Shares of Wakefit are expected to make its market debut on the BSE and NSE on December 15, 2025.

The home and decor D2C startup’s IPO comprises a fresh issue of equity shares worth up to ₹377.1 crore and an offer for sale (OFS) of 4.67 crore shares by promoters and existing investors. The price band for the IPO is ₹185 to ₹195 per share and the lot size is 76 shares and in multiple thereafter. The minimum application amount for an retail investor is ₹14,820.

Under the OFS, promoters Ankit Garg and Chaitanya Ramalingegowda, along with shareholders including Nitika Goel, Peak XV Partners Investments VI, Redwood Trust, Verlinvest S.A., SAI Global India Fund I LLP and Paramark KB Fund I, will offload part of their holdings.

Out of the ₹377 crore proposed to be raised from fresh equity, Wakefit plans to deploy ₹161.4 crore for lease and license fee payments for existing stores and ₹108.4 crore for marketing and brand-building activities. The company will use ₹30.8 crore for setting up 117 new COCO (company-owned, company-operated) stores; ₹15.4 crore for purchase of equipment and machinery; and remaining capital will go towards general corporate purposes.

On the financial front, Wakefit reported revenue at ₹1,305.43 crore for the financial year ended March 31, 2025, growing by 28% from ₹1,017.33 in FY24. The profit after tax (PAT) widened to ₹35 crore in FY25 as compared to a loss of ₹15.05 crore reporrted in FY24. For the six months ended September 30, 2025, revenue stood at ₹724 crore, with a profit of ₹35.5 crore.

At the operating level, EBITDA grew from ₹65.85 crore in FY24 to ₹90.83 crore in FY25, and further to ₹103.19 crore in the first half of FY26.

As of September 30, 2025, net worth of Wakefit stood at ₹557.34 crore, growing from ₹520.57 crore in FY25. The assets increased from ₹928.30 crore in FY24 to ₹1,050.75 crore in FY25, and further to ₹1,220.34 crore by September 2025.

Incorporated in 2016, the company offers a broad portfolio of mattresses, furniture, and home furnishings through its own website, COCO stores, and external channels including major e-commerce marketplaces and multi-brand outlets. Its full-stack, vertically integrated model enables control over product design, manufacturing, distribution and customer service.

The company operates five manufacturing facilities—two in Bengaluru (Karnataka), two in Hosur (Tamil Nadu), and one in Sonipat (Haryana).