Wakefit Innovations Limited files DRHP with SEBI; to raise Rs 468 crore via fresh issue

Wakefit Innovations Limited, the largest D2C home and furnishings company in India in terms of revenue in Fiscal 2024, as per a Redseer report has filed the draft red herring prospectus (DRHP) with capital markets regulator SEBI to raise funds through an initial public offering (IPO).

According to the DRHP, the proposed IPO of the Bengaluru-based company is a combination of a fresh issue of equity shares aggregating up to Rs. 468.2 crore and an offer for sale (OFS) of 5.84 crore shares by the selling shareholders.

As part of the OFS, the promoters – Ankit Garg and Chaitanya Ramalingegowda and Other Selling Shareholders – Nitika Goel, Peak XV Partners Investments VI, Redwood Trust, Verlinvest S.A., SAI Global India Fund I LLP, Investcorp Growth Equity Fund, Investcorp Growth Opportunity Fund and Paramark KB Fund I will be offloading shares.

Wakefit proposes to utilize the Net Proceeds from the Fresh Issue towards funding of capital expenditure worth Rs. 82 crores for setting up of 117 new COCO – Regular Stores and one COCO – Jumbo Store; Rs. 15.4 crores towards capex for purchase of new equipment and machinery; Rs. 145 crores towards expenditure for lease, sub-lease rent and license fee payments for existing stores; Rs 108.4 crores towards marketing and advertisement expenses for enhancing the awareness and visibility of the brand and the remaining amount will be used for general corporate purposes.

Wakefit, which was incorporated in 2016 is the fastest homegrown player in the home and furnishings market in India among organized peers to achieve a total income of more than Rs. 1,000 crores, as of March 31, 2024.

It has a wide range of mattresses, furniture, and furnishings which it sells through both own channels (comprising the website and COCO – Stores) and external channels (including various marketplaces, such as major e-commerce platforms and multi-branded outlets).

Wakefit operates five manufacturing facilities of which two are situated at Bengaluru, Karnataka, two at Hosur, Tamil Nadu and one at Sonipat, Haryana. Its facilities are equipped with imported machinery and automation technologies, such as robotic arms and roller belts, which streamline the production process and reduce waste.

Wakefit reported revenue from operations of Rs. 986.3 crore in FY24 and Rs. 971 crore for the nine-months period ended December 31, 2024.

Axis Capital Limited, IIFL Capital Services Limited and Nomura Financial Advisory and Securities (India) Private Limited are the Book Running Lead Managers to the issue. The equity shares of the company are proposed to be listed on BSE and NSE.