Wakefit makes an IPO move; MSMEs leveraging digital payments boom

Hello,

India’s paint section is heating up as new entrants take on established players. 

JSW Paints is buying Dutch paint maker Akzo Nobel’s Indian arm—which operates under the ‘Dulux’ brand in India—for about $1.6 billion, in what will be the country's biggest deal in the segment yet.

The deal comes at a time when challenges for Indian paint makers are on the rise, including volatile raw material costs and heightened competition, with billionaire Kumar Mangalam Birla’s entry into the sector last year eating into Asian Paints’ market share, Reuters reported.

Elsewhere, HDB Financial Services’ $1.5 billion IPO drew bids worth $19 billion by Friday’s close as institutional buyers rushed for India’s largest offering so far this year. HDFC Bank holds over 94% stake in HDB Financial Services, a non-banking financial company arm of the bank.

ICYMI: CoreWeave Co-founder and CEO Michael Intrator is now one of the richest people in the world after his net worth zoomed to $10 billion in three months, thanks to the AI cloud computing company’s IPO. 

Lastly, Google is launching a new experimental app called Doppl that helps users see how different outfits might look on them. The app is currently available in the US. 

A virtual trial room!

In today’s newsletter, we will talk about 

• Wakefit makes an IPO move
• MSMEs leveraging digital payments boom
• Inside the Dialogic Method

Here’s your trivia for today: What is the tallest dog breed in the world?

D2C

Wakefit makes an IPO move

Mattress and furniture retailer Wakefit has filed its draft papers with the 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. 

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.

Market route:

• 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.
• The funds will 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.
• Wakefit reported a loss of Rs 15.05 crore in FY24, down from Rs 145.68 crore in FY23. The company reported a 21.9% rise in annual revenue, reaching Rs 986.35 crore, driven by rising sales across its product categories—mattresses, furniture, and furnishings.

Top Funding Deals of the Week

Startup: GIVA

Amount: Rs 530 Cr

Round: Series C

Startup: Wiom

Amount: $40M

Round: Growth

Startup: EKA Mobility

Amount: Rs 200 Cr

Round: Equity

MSME Sparks

MSMEs leveraging digital payments boom

With UPI transactions crossing record volumes, payment gateway providers are increasingly focusing on how small businesses can use this digital payments boom to streamline operations and expand their customer base.  

A large share of this growth for the fintech firm is driven beyond India’s metros, with digital payments opening up new markets, said Ankit Gaur, Head of Payment Gateway and Online Merchants at PhonePe, during a fireside chat at MSME Sparks 2025, a week-long event hosted by YourStory to celebrate Indian MSMEs. 

Key takeaways:

• According to Gaur, digital payments have addressed one of the most fundamental hurdles for MSMEs, which is access to formal credit. Traditionally, smaller businesses in these markets operated primarily on cash, making it nearly impossible to establish creditworthiness with banks or financial institutions.
• The journey to widespread digital adoption hasn’t been without challenges. Gaur said PhonePe has put a lot of effort into educating consumers about digital payments.
• Looking ahead, Gaur sees opportunities for MSMEs to expand internationally through digital payments. “...For SMEs and MSMEs who are looking to grow, what digital payments do is just open up your different models of selling, not just locally, not just nationally, but internationally as well.”

Social Story

Inside the Dialogic Method

Krishna Udayasankar formed the Kshetra Foundation for Dialogue in 2022 and the Dialogic Method—a tool that helps people change the way they participate in any situation by creating value, discovering new approaches to a situation, and co-creating solutions that last at individual, community, and societal levels.

News & updates

• Data concerns: Germany’s data protection commissioner has asked Apple and Google to remove Chinese AI startup DeepSeek from their app stores in the country due to concerns about data protection, following a similar crackdown elsewhere.
• Trump tariff: Nike expects costs to increase by about $1 billion as a result of US President Donald Trump’s tariff war, as the sportswear company looks to reduce its manufacturing in China. The market value of the company has dropped by a third over the past year.
• AI copyright: The Danish government plans to clamp down on the creation and dissemination of AI-generated deepfakes by changing copyright law to ensure that everybody has the right to their own body, facial features, and voice.

What is the tallest dog breed in the world?

Answer: Irish Wolfhound.

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