·  Wakefit files DRHP to raise Rs 468 crore via fresh issue in upcoming IPO.

·  Peak XV, Verlinvest, and co-founders to offload shares in major D2C exit move.

·  Revenue hits Rs 971 crore in FY25 (9M); brand plans major retail and marketing expansion.

Direct-to-consumer sleep and home solutions company Wakefit has filed its Draft Red Herring Prospectus (DRHP) with SEBI for a forthcoming initial public offering (IPO). The IPO will consist of a fresh issue of shares aggregating to Rs 468.2 crore, as well as an offer for sale (OFS) of up to 5.84 crore shares by existing investors.

Among the major sellers in the OFS is Peak XV Partners (formerly Sequoia Capital India), the largest external shareholder of Wakefit with a stake of 22.7%, who will sell around 2.5 crore shares. Other selling investors are Verlinvest (1 crore shares), Investcorp Growth (54.5 lakh shares), and others like Redwood8yu6 Trust, SAI Global, and Paramark Fund. Founders Ankit Garg and Chaitanya Ramalingegowda will also sell a total of 1.21 crore shares.

Established in 2016, Wakefit began by launching mattresses and then eventually expanded into a wider furniture and home furniture category. The company has emerged as a prominent name within India's maturing D2C landscape. For the first nine months of FY25, the company reported Rs 971 crore in revenue while registering a lower net loss of Rs 8.8 crore. Revenue in FY24 was at Rs 986.3 crore  a huge leap from Rs 199 crore in FY20.

Wakefit's sales are headed by its mattress segment, followed by furniture and soft furnishings. More than 54% of its sales are generated from its website and offline stores, and the remaining from third-party marketplaces and multi-brand stores.

The IPO will be handled by Axis Capital, IIFL Capital, and Nomura as book-running lead managers. Wakefit will list on both BSE and NSE.

Proceeds of the new issue will be utilized in opening 117 new COCO - Regular Stores and one Jumbo Store (Rs 82 crore), purchase of equipment (Rs 15.4 crore), rent and licensing fee (Rs 145 crore), and marketing and visibility of brand (Rs 108.4 crore). The balance amount will be utilized for general corporate expenses.

Having raised more than $100 million so far, Wakefit's IPO would be among the first significant public entrances by a D2C consumer brand in India this year, providing partial or complete exits for various early-stage investors.