In a significant pre-IPO move, home and furnishings major Wakefit Innovations Ltd has secured a substantial investment of ₹186 crore from three prominent investors through secondary market transactions. This development comes just ahead of the company's initial public offering (IPO), which is set to open for public subscription soon.
Details of the Secondary Transaction
The investment was made by Steadview Capital Mauritius, WhiteOak Capital, and Temasek-backed Capital 2B. According to a public announcement by Wakefit, these entities collectively purchased 95.57 lakh equity shares at a price of ₹195 per share. The transactions were executed on December 3 and 4.
Breaking down the individual contributions, Steadview Capital invested ₹101 crore, WhiteOak Capital put in ₹72 crore, and Capital 2B infused ₹13 crore. These shares were bought from existing shareholders, namely Peak XV Partners, Redwood Trust, and Verlinvest SA. Market sources indicate that robust demand for Wakefit prompted these existing shareholders to offload additional shares outside the IPO to the three new entities, who are now shareholders.
IPO and Anchor Investor Momentum
Following this secondary round, Wakefit further bolstered its position by collecting ₹580 crore from anchor investors on December 5. The anchor investor list is a who's who of institutional names, including HDFC Life Insurance, Bajaj Life Insurance, Prudential Hong Kong, 360 One, Steadview Capital (again), Amundi Funds New Silk Road, HDFC Mutual Fund, and Axis Mutual Fund.
The public issue itself is a combination of a fresh issue and an offer for sale (OFS). The total IPO size is ₹1,289 crore. This comprises a fresh issue of equity shares worth up to ₹377.18 crore and an OFS of 4,67,54,405 shares, valued at around ₹912 crore.
As part of the OFS, promoters Ankit Garg and Chaitanya Ramalingegowda, along with other selling shareholders like Nitika Goel, Peak XV Partners, Redwood Trust, Verlinvest SA, SAI Global India Fund I LLP, and Paramark KB Fund I, will offload shares. Post this stake sale, the promoters' holding is expected to reduce to around 37% from the current 43.70%.
Utilisation of Funds and Company Profile
Wakefit plans to utilise the proceeds from the fresh issue for several strategic initiatives. These include:
- ₹31 crore for setting up 117 new company-owned, company-operated (COCO) regular stores.
- ₹15.4 crore towards the purchase of new equipment and machinery.
- ₹161.4 crore for lease, sub-lease rent, and license fee payments for existing stores.
- ₹108.4 crore for marketing and advertisement expenses to enhance brand awareness.
- The remaining amount will be used for general corporate purposes.
This funding round follows a pre-IPO round last month where Wakefit raised ₹56 crore from DSP India Fund and 360 ONE Equity Opportunities Fund.
Founded in 2016, Wakefit has rapidly grown to become one of the fastest-growing homegrown players in India's organised home and furnishings market. The company achieved a total income of more than ₹1,000 crore as of March 31, 2024. It offers a wide range of mattresses, furniture, and furnishings through its own channels (website and COCO stores) and external channels like major e-commerce platforms and multi-brand outlets.
Operating as a vertically integrated company, Wakefit controls every aspect from product design and engineering to manufacturing, distribution, and customer engagement. It operates five manufacturing facilities in Bengaluru, Hosur, and Sonipat, equipped with advanced automation technologies like robotic arms.
On the financial front, for the six-month period ended September 30, 2025, Wakefit reported revenue from operations of ₹724 crore and a profit of ₹35.5 crore. The company is scheduled to make its stock market debut on December 15.
