D2C mattress brand Wakefit files DRHP with SEBI to raise Rs 468 crore via fresh issue

Wakefit, the direct-to-consumer (D2C) sleep and home furnishings brand, has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for a proposed initial public offering. The offering will comprise a fresh issue of equity shares worth Rs 468.2 crore and an offer for sale (OFS) of up to 5.84 crore shares by existing shareholders.

According to the DRHP, Peak XV Partners (formerly Sequoia Capital India), the company’s largest external stakeholder with a 22.7% holding, will offload approximately 2.5 crore shares—accounting for nearly half of the total OFS. Other major investors participating in the share sale include Verlinvest (1 crore shares), Investcorp Growth (54.5 lakh shares), and entities such as Redwood Trust, SAI Global, and Paramark Fund. Co-founders Ankit Garg and Chaitanya Ramalingegowda will collectively sell 1.21 crore shares.

Founded in 2016, Wakefit started as a mattress company and later diversified into furniture and home furnishing products. Its growth trajectory has mirrored India’s rising preference for organized D2C brands in the home category.

The company posted a revenue of Rs 971 crore in the first nine months of FY25, while narrowing its net loss to Rs 8.8 crore. For the full fiscal year FY24, it reported Rs 986.3 crore in revenue, significantly up from Rs 199 crore in FY20.

Wakefit's product mix is anchored by mattresses, its top-selling category, followed by furniture and soft furnishings. The brand generates over half (54.78%) of its revenue through its own website and offline stores, with the remainder coming from third-party marketplaces and multi-brand outlets.

The IPO will be managed by Axis Capital, IIFL Capital, and Nomura as book-running lead managers. Wakefit plans to list on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

The company intends to utilize the IPO proceeds to fund capital expenditure of Rs 82 crore for setting up 117 new COCO – Regular Stores and one COCO – Jumbo Store; Rs 15.4 crore for purchasing new equipment and machinery; Rs 145 crore for lease, sublease rent, and license fee payments for existing stores; and Rs 108.4 crore for marketing and advertising to enhance brand visibility. The remaining amount will be allocated toward general corporate purposes.

It has raised more than $100 million to date from investors including Peak XV, Verlinvest SA, Paramark Ventures, and Investcorp. Through this offering, several early backers are expected to partially or fully exit, in what could be one of the first notable D2C consumer IPOs from India this year.