Wakefit Innovations Expands Public Offering Plans
Bengaluru-headquartered home furnishings company Wakefit Innovations has significantly increased the size of its upcoming initial public offering to ₹1,400 crore, according to three individuals with direct knowledge of the development. The public listing, scheduled for early December, represents a substantial expansion from the company's initial plans filed with regulators in June.
The revised IPO structure now includes a ₹200-crore pre-IPO round that will see participation from both foreign and domestic institutional investors. This pre-IPO funding will occur before the anchor investor portion opens, as confirmed by two anonymous sources familiar with the matter.
IPO Composition and Store Expansion Strategy
The public offering will comprise both primary and secondary share sales. In its draft papers submitted to regulators in June, Wakefit had outlined plans to raise ₹468.2 crore in primary funding, primarily intended to more than double its current store count across India.
With the inclusion of secondary transactions, the total issue size has now reached the ₹1,400 crore mark. The company has appointed Axis Capital, IIFL Securities, and Nomura as investment bankers to manage the public offering process.
Wakefit declined to comment on these recent developments when approached for clarification.
Offer for Sale Details and Investor Participation
The IPO will feature a significant offer-for-sale (OFS) component where current stakeholders, including founders and major private equity investors, will collectively sell approximately 58.4 million shares.
Promoters Ankit Garg and Chaitanya Ramalingegowda along with investors including Peak XV, Investcorp, Verlinvest, Paramark KB, and SAI Global India Fund are expected to participate in the OFS. These marquee investors have supported Wakefit through multiple funding rounds between 2018 and 2023.
The company's most recent funding round occurred in January 2023, when it raised ₹320 crore led by Investcorp with participation from existing investors Sequoia Capital India, Verlinvest, and SIG.
India's Booming IPO Market Context
Wakefit joins an expanding list of Indian startups seeking to tap public markets during one of the busiest periods for capital markets this year. Recent weeks have witnessed several companies including Lenskart, Groww, PhysicsWallah, Meesho, and Fractal Analytics either going public or preparing for listings in the current quarter.
According to data from Prime Database, the IPO landscape has shown remarkable growth throughout 2025:
- First two quarters of 2025: 9 issues each
- July-September quarter: 46 listings
- Current quarter (ongoing): 25 listings so far
This 91 listings in entire 2024, highlighting the accelerated pace of public offerings in the current year.
Financial Performance and Business Model
Founded in 2016, Wakefit has established itself as a prominent direct-to-consumer home furnishings brand specializing in mattresses, beds, sofas, and related home products. The company operates primarily through its own website and mobile application while expanding through a combination of e-commerce platforms, experience centers, and company-owned stores.
According to the draft prospectus, Wakefit reported total income of ₹994.3 crore with a net loss of ₹8.8 crore during the first nine months of fiscal year 2025.
The company demonstrated improved financial metrics compared to previous years, with total income reaching ₹1,017.3 crore in FY24 compared to ₹820 crore in FY23. More significantly, net losses narrowed substantially to ₹15.05 crore in FY24 from ₹145.68 crore in the previous fiscal year.
Pre-IPO Investment Trend in Indian Markets
The inclusion of a pre-IPO round aligns with a growing trend in Indian capital markets where institutional investors are increasingly participating in funding rounds immediately before public listings. This strategy allows investors to secure allocations at potentially more attractive valuations than post-listing levels.
Prakash Bulusu, joint CEO of IIFL Capital, commented on this phenomenon, noting that public market sentiment has turned constructive with new listings witnessing healthy subscription and strong after-market performance. He explained that pre-IPO deals enable investors to build relationships with companies early while locking in favorable valuations.
Akhoury Winnie Shekhar, Partner at CMS INDUSLAW, echoed these observations, stating that pre-IPO funding rounds are increasing among companies with strong growth narratives and sustained investor appetite. She noted that many current rounds include both primary and secondary components, allowing early investors and employees to achieve partial liquidity before the official listing.
Broader IPO Market Landscape
India's primary market has demonstrated remarkable buoyancy throughout 2025 after a relatively slow start. According to a Bernstein report, Indian companies have raised $14 billion via IPOs in 2025, ranking fourth globally behind the United States ($53 billion), Hong Kong ($23 billion), and China ($16 billion).
Prime Database data indicates that total IPO fundraising reached ₹1,59,784 crore in 2024, with 2025 showing even stronger performance metrics.
The year has witnessed several high-profile listings including JSW Cement Ltd, Tata Capital Ltd, Ather Energy Ltd, and LG Electronics India Ltd. Other significant public offerings have come from HDB Financial Services Ltd, Indiqube Spaces Ltd, Bluestone Jewellery and Lifestyle Ltd, and We Work India Ltd.
At least 30 additional companies have received regulatory approval for potential listings in the coming months, including Milky Mist Dairy Food Ltd, Curefoods India Ltd, Shiprocket, Capillary Technologies, and Shadowfax Technologies Ltd, indicating sustained momentum in India's public offering ecosystem.
