Wakefit files draft papers with Sebi for Rs 468 Cr IPO

Mattress and furniture retailer Wakefit has filed its draft papers with markets regulator SEBI to list on the public exchanges. The offer comprises a fresh issue of shares worth Rs 468.2 crore and an offer for sale of up to 5.8 crore of equity shares.

Peak XV-backed Wakefit joins a long list of startups that are eyeing to go public this year, including BlueStone and Prosus-backed Urban Company.

Earlier this month, the company converted into a public entity.

According to the draft red herring prospectus, Wakefit intends to use the funds to set up 117 new COCO-Regular stores and one COCO-Jumbo store. COCO refers to company-owned company-operated stores.

According to the company, COCO–Regular retail stores are operated by the company from leased, sub-leased or licensed premises, ranging from 400 square feet to 10,000 square feet. COCO–Jumbo stores are larger stores to be opened and operated by the company on leased land or from leased premises, with a retail space of 50,000 square feet to 2,00,000 square feet.

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The funds will also be used for expenditure related to leasing, sub-leasing, and licence fee payments for existing stores and for the purchase of new equipment and machinery. It also intends to use a portion of the funds for marketing and advertisements and general corporate purposes.

Founders Ankit Garg and Chaitanya Ramalingegowda will offload 7.7 crore and 4.5 crore of equity shares, respectively, in the offering. Other selling shareholders include Peak XV Partners, Redwood Trust, and SAI Global India Fund.

Wakefit reported a revenue of Rs 971 crore in the nine-months ended December 31, 2024 and a loss of Rs 88.09 crore during the same period. It clocked a 24% rise in FY24 revenue at Rs 1,017 crore and became EBITDA profitable during the period.

Axis Capital, IIFL Capital Services and Nomura Financial Advisory and Securities are the lead bookrunning managers for the IPO. 

The copy was updated.