In a significant development for India's startup ecosystem, home-furnishings brand Wakefit Innovations is finalizing a major pre-IPO funding round with participation from prominent financial institutions and investment firms. The company is preparing for its public market debut scheduled for next month.
Major Investors Join Pre-IPO Round
A consortium of leading investment firms including 360 One, Steadview Capital, WhiteOak Capital, and Info Edge are set to participate in Wakefit's pre-IPO placement round. According to three people familiar with the matter who spoke on condition of anonymity, these investors will collectively pump approximately ₹210-220 crore into the company.
The funding round will include both primary and secondary components, providing fresh capital while allowing some existing shareholders to partially exit. This development comes just weeks after the company raised ₹56 crore in pre-IPO placement from DSP India Fund and 360 One Equity Opportunities Fund at a valuation exceeding ₹6,400 crore.
IPO Details and Expansion Plans
Wakefit is targeting a mid-December listing for its initial public offering, which has now been scaled up to ₹1,400 crore from the original plan outlined in draft papers filed with regulators in June. The company had initially planned to raise ₹468.2 crore in primary funding primarily to more than double its store count across India.
The IPO will feature an offer-for-sale (OFS) component where current owners including founders Ankit Garg and Chaitanya Ramalingegowda, along with major investors such as Peak XV, Investcorp, Verlinvest, Paramark KB, and SAI Global India Fund, will collectively sell approximately 58.4 million shares.
Financial Performance and Business Model
Founded in 2016, Wakefit has established itself as a prominent player in the home furnishings sector, specializing in mattresses, beds, sofas, and related products. The Bengaluru-based company sells primarily through its own website and app, while also expanding through experience centers and company-owned stores.
The company's financial performance shows promising trends. For the first nine months of fiscal year 2025, Wakefit reported an income of ₹994.3 crore with a significantly reduced net loss of ₹8.8 crore. This represents substantial improvement from the previous fiscal year, where total income reached ₹1,017.3 crore (up from ₹820 crore in FY23) and net loss narrowed to ₹15.05 crore from ₹145.68 crore.
Broader Market Context
Wakefit joins a growing list of Indian startups tapping public markets during one of the busiest periods for capital markets this year. Recent weeks have seen several companies including Lenskart, Groww, PhysicsWallah, Meesho, and Fractal Analytics either going public or preparing for listings.
According to Prime Database, the IPO market has gained significant momentum after a slower start to 2025. The first two quarters saw nine issues each, followed by 46 listings in the July-September quarter. This robust activity positions India as the fourth-largest IPO market globally in 2025, with companies raising $14 billion, trailing only the US ($53 billion), Hong Kong ($23 billion), and China ($16 billion).
The trend of pre-IPO placements is becoming increasingly common as institutional investors seek to secure meaningful stakes at attractive valuations before public subscriptions open. This approach differs from traditional pre-IPO fundraising that occurs 12-18 months before listing and anchor investments made during the IPO process.
Wakefit has appointed Axis Capital, IIFL Securities, and Nomura as investment bankers to manage the public issue. The company's journey includes multiple funding rounds from marquee investors between 2018 and 2023, with the most recent being a ₹320 crore round in January 2023 led by Investcorp with participation from Sequoia Capital India, Verlinvest, and SIG.
This development occurs against the backdrop of recent regulatory changes by SEBI restricting mutual funds from participating in pre-IPO placements, potentially shifting investment activity toward alternative pools such as Alternative Investment Funds (AIFs) and Portfolio Management Services (PMS).
