Wakefit Innovations files DRHP with Sebi to launch IPO; check key details

Wakefit Innovations Limited, a leading D2C home and furnishings company in India, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The company aims to raise Rs 468.2 crore through a fresh issue of equity shares, coupled with an offer for sale (OFS) of 5.83 crore shares by existing shareholders. The IPO will also consider a pre-IPO placement, which could adjust the fresh issue size.

The IPO proceedings are earmarked for several key developments. Wakefit plans to allocate Rs 82 crore for opening 117 new COCO – Regular Stores and one COCO – Jumbo Store. Additionally, Rs 15.4 crore will be spent on new equipment and machinery, Rs 145 crore on lease-related expenditures, and Rs 108.4 crore on marketing and brand visibility. Remaining funds will address general corporate purposes.

Founded in 2016, Wakefit Innovations has swiftly grown to become the largest direct-to-consumer home and furnishings brand in India by revenue. The company achieved a total income exceeding Rs 1,000 crore by the end of March 2024. It employs a vertically integrated model, controlling aspects from product design to customer engagement, with operations supported by five manufacturing facilities across Karnataka, Tamil Nadu, and Haryana.

Wakefit Innovations recorded revenue from operations of Rs 986.3 crore in the fiscal year 2024, with Rs 971 crore in revenue reported for the nine months ending December 2024. The company offers a broad array of products including mattresses, furniture, and home furnishings, sold through both proprietary and third-party channels.

The Indian home and furnishings market, valued at approximately Rs 2.8 lakh crore as of 2024, is forecasted to grow at a CAGR of 13% to reach Rs 5.9 lakh crore by 2030. This growth is driven by the expansion of organised retail, increased online presence, and the trend towards premium products.

Wakefit Innovations has partnered with Axis Capital Limited, IIFL Capital Services Limited, and Nomura Financial Advisory and Securities (India) Private Limited as the book-running lead managers for this IPO. The equity shares will be listed on the BSE and NSE.

The current offering also involves existing shareholders such as Ankit Garg and Chaitanya Ramalingegowda, along with investors like Peak XV Partners Investments VI, Redwood Trust, and Verlinvest S.A., who will be offloading shares.

The company may also raise up to Rs 93.6 crore through a pre-IPO placement, which would result in a reduction of the fresh issue size by the equivalent amount. This strategic move is aimed at optimizing the IPO structure before the formal filing with the Registrar of Companies (ROC).

Wakefit's growth trajectory is supported by its ability to streamline operations with advanced manufacturing technologies, such as robotic arms and roller belts, reducing waste and enhancing efficiency in production processes.

The IPO marks a significant milestone in the company's growth journey, further strengthening its market position and enabling continued expansion across the Indian home and furnishings sector. The public listing will provide Wakefit with additional capital to pursue its strategic objectives and enhance shareholder value.