Wakefit, the Bengaluru-based home and sleep solutions brand, has officially filed its Red Herring Prospectus (RHP) dated November 30, setting the stage for its maiden public offering. The company aims to raise ₹377.2 crore through a fresh issue, alongside an Offer for Sale (OFS) of 4.68 crore equity shares from existing shareholders.
IPO Structure and Timeline
The public issue will open for subscription on December 5 and close on December 8, 2025, with anchor bidding scheduled for December 5. Compared to its earlier DRHP, Wakefit has reduced the offer size the initial plan proposed a ₹468 crore fresh issue and an OFS of 5.84 crore shares. Axis Capital, IIFL Capital, and Nomura are acting as book-running lead managers, while MUFG Intime serves as registrar.
Major Shareholder Exits
Peak XV Partners is set to lead the OFS with 2 crore shares, accounting for nearly 43.6% of the total equity offloaded. Verlinvest will sell 1 crore shares, and Paramark Ventures will divest 25.54 lakh shares. Other selling stakeholders include Redwood Trust, SAI Global, and additional investors. Co-founders Ankit Garg and Chaitanya Ramalingegowda will together offload 1.21 crore shares. Peak XV remains the largest external shareholder with a 22.47% stake, followed by Verlinvest and Investcorp at 9.79% and 9.29%, respectively.
Use of Proceeds
Wakefit plans to deploy ₹161.5 crore from the fresh issue towards leasing and licence fee payments for existing stores. Another ₹108.4 crore is earmarked for marketing and advertising to strengthen brand visibility. The company will invest ₹30.8 crore in expanding its retail footprint through 117 new COCO stores and allocate ₹15.4 crore for new machinery and equipment. Remaining funds will support general corporate activities.
Financial Performance
For the first half of FY26, Wakefit posted ₹724 crore in operating revenue, with a net profit of ₹35.57 crore. In FY25, revenue grew nearly 30% YoY to ₹1,274 crore, though the company reported a ₹35 crore net loss, reflecting its investment-heavy expansion strategy.
Final Take
With improving profitability, strong brand recall, and aggressive retail expansion, Wakefit’s IPO arrives at a decisive moment as India’s home and sleep segment sharpens its shift toward organised, experience-led commerce.
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