Wakefit files IPO papers, to raise Rs 468-crore via fresh issue; investors to offload 5.8 crore shares in OFS

Chaitanya Ramalingegowda, co-founder, Wakefit

Wakefit, a sleep and home solutions startup, has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) on June 27 to raise Rs 468.2 crore via a fresh issue of shares.

The company’s investors, including Paramark, Investcorp, Verlinvest SA, Redwood Trust and Peak XV Partners, will all sell some shares in the company through the offer for sale (OFS) route.

Founders Ankit Garg and Chaitanya Ramalingegowda, too, will sell some shares in the company, the DRHP shows. In all, 5.8 crore shares will be on offer.

The company had set the ball rolling and has hired Axis Capital, IIFL Capital Services and Nomura as advisers for its IPO, Moneycontrol had reported in April.

In all, while Rs 468 crore will come in primary capital, there will another large chunk in OFS. The company is looking to raise around Rs 1,500-2,000 crore, or about $200 million through in total an IPO, sources had told Moneycontrol earlier.

Wakefit, which has raised more than $100 million (around Rs 850 crore) from Peak XV Partners, South Korea’s Paramark Ventures, Europe’s Verlinvest and others, will look to give some of its early backers an exit..

Founded by Ankit Garg and Chaitanya Ramalingegowda in 2016, Wakefit started as a mattress company but forayed into ancillary products such as cots, tables, chairs and other home furnishing categories to boost its top line.

The company has gone from a top line of Rs 199 crore in FY20 to Rs 1,017 crore in FY24. At the same time, it narrowed losses from Rs 146 crore in FY23 to Rs 15 crore in FY24, regulatory filings had shown.

It competes with Premji Invest-backed The Sleep Company, Westbridge-funded WoodenStreet , global retail giant IKEA and others in a fast-growing market.