Wakefit Innovations IPO Review | Profitability Concerns & Competitive Pressure Explained

Wakefit Innovations, incorporated in 2016, is a new-age D2C brand operating in the home furnishings, décor, and mattress segment, with mattresses contributing nearly 60% of revenues. The company has expanded from a digital-first model to physical stores through COCO outlets and 1,500 multi-brand retail partners, gaining visibility in major cities like Delhi-NCR and Mumbai. However, Wakefit faces stiff competition from the unorganized furniture and mattress market, where pricing and product differentiation remain challenges. Financially, the company has posted losses for multiple years and has only recently shown profitability in H1 FY26, raising questions about sustainability. Analysts suggest adopting a wait-and-watch approach-monitor performance post-listing before committing for the long term.