Wakefit innovations Ltd

Wakefit innovations

Wakefit is a D2C Home & furnishings company that has vertically integrated operations, spanning product design, manufacturing, distribution, and direct sales to consumers. Its products include Mattresses (~61% revenue), Furniture (~28%) and Furnishing products (~11%). It sells products through omnichannel strategy which includes its website (~29%), COCO stores (~28%), Online marketplaces (~38%) & Multi-Branded Outlets (MBOs) (~5%). 

It was co-founded by Ankit (IIT Roorkee graduate) and Chaitanya (ISB hyderabad post graduate) in 2016 and raised its Series A funding from Peak XV Partners (Sequoia Capital India) in 2018 and followed this with later rounds backed by Verlinvest SA, Elevation Capital, InvestCorp, among others.

RHP filed: 29th November 2025

BRLM: Axis Capital, IIFL Capital Services, Nomura Financial Advisory and

Securities (India)

Auditor: B S R & Co. LLP

Disclaimer - Delta Partners (public market division under Dexter Capital) is not a SEBI registered Investment Advisor and this report does not constitute a recommendation but is only prepared for educational purposes. We (our team members including our directors) may or may not apply to IPO. 

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Delta’s View : Track

Wakefit is a good quality business in a growing industry. However, the company is still evaluating strategies to achieve profitability which mostly rely upon management’s successful execution. An IPO ask valuation of 6,373 cr (4.7x P/S TTM) appears stretched and doesn't comfort us at this stage. At the current valuation, Wakefit is priced on par with market leader Sheetal Foams, which generates nearly 3x its revenue at a higher operating margin. We would want to wait a few quarters to evaluate management's execution. A more reasonable valuation would offer a better entry point.

One can expect only flat to moderate listing gains as per current GMP ~2.5%, provided the GMP sustains.

The once dull Home & furnishing industry for organized players, had seen a significant inflow of private capital and acquisitions over the last few years, especially in the mattresses segment. The market leader Sheela foams acquired Kurlon & Furlenco, Springwel mattresses acquired SleepyCat, along with PE capital funding the growing D2C segment players such as The Sleep company and Duroflex. The rise in organised mattress segment has also been driven by shift in consumer preference towards Foam, Latex & Spring mattresses from being traditionally dominated by cotton mattresses. 

Wakefit, incorporated as an online D2C company just 9 years ago, grew from ~80 cr sales in FY19 to 813 cr sales in FY23 (CAGR ~79%). It launched its first COCO store & MBO in 2022 and expanded to 125 COCO stores (contributing ~35% revenue) & 1,504 MBOs (~5% of revenue) as of Sept, 2025. During the period, it increased its gross margins to over 57% (6M FY26) from 43% (FY23) while maintaining revenue growth ~25% over FY23-FY25 due to better pricing in offline COCO stores & higher Avg order size (more than 79%) compared to orders through website. 

It aims to utilise 192 cr from Fresh issue into setting up 117 new COCO stores & for lease payments of existing stores, plans to build 2 large 50,000-200,000 sq ft COCO stores in Bengaluru. Having generated about ~3.5 cr sales per COCO on an upfront capex of ~25-30 lakh and lease of ~30-40 lakh annually, the business is expected to improve its margins, get a wider footprint of stores, and achieve profitability per COCO store as existing stores mature. The overall business had a contribution margin of ~7% after netting its direct costs, lease expense, employee salaries & marketing expenses. The company also has over 58% business through its own channels which helps it build brand & better pricing due to control over its value chain.

• It started as an online D2C player with sales through its website & e-commerce channels only. In an industry traditionally dominated by unorganised players and few scale (B2B + B2C) players, it has managed to reach a wide consumer base with the help of online channels (targeting B2C) which earlier seemed difficult for organized players. Incorporated in 2016, it raised its first institutional funds from Peak XV Partners Investments VI and Redwood Trust in 2018. It had since grown its revenue from just 80 cr in FY19 to 813 cr in FY23 at a CAGR ~79%. It launched its offline sales through the first COCO store & MBO in 2022 only. 

• The industry saw a significant inflow of private capital and rise of D2C players along with increase in M&A by incumbent players, especially in the mattress industry. Sheela foams (only listed player, ~30% market share in Indian mattress) acquired Kurlon (Large branded mattress player) & stake in Furlenco (Furniture player) in 2023 & 2024. Springwel mattresses acquired SleepyCat (D2C mattress brand) in 2024. Duroflex has raised PE funding from Lighthouse & Norwest ventures and grew Sleepyhead brand as a D2C mattress brand under it, with plans for IPO. Another D2C, The Sleep Company had raised funds from investors like Fireside Ventures, PremjiInvest & ChrysCapital. 

• Also, changing consumer preference to premium mattresses made of Foam, Latex and Spring mattresses over Cotton mattresses (Comprising ~68% of market in 2019, decreased to ~60% in 2024) have made way for organized players to capture this market which is largely unorganized. Organized mattress players have grown from approximately 20% to approximately 30% share by value from 2019 to 2024, respectively.

• The company strategizes to further carry this growth by expanding store footprint through COCO stores, which offer AOV much greater (~79% larger orders) than online channels and better pricing / margins. The online channels have more competitive pricing due to easy comparison for consumers & additional discounts, while offline is built for better brand experience where it has to also cover lease & staff salaries expense which allows it to charge more in its stores. Its gross margins have increased significantly from 41% in FY22 to 55% (FY25) & 57% (6M FY26), led by expansion of COCO stores, from almost nothing in FY22 to 105 (FY25) & 125 (6M FY26) outstanding COCO stores. Revenue from its COCO stores contributed about 28% & 35% in FY25 & 6M FY26 respectively. 

• While its competitors like Sheela foams & Duroflex, although profitable, had gross margins of just ~43-44%, Wakefit’s offline strategy appears to be benefitting it while maintaining a growth rate much higher than the peers. At a time, when its peers are chasing growth through acquisitions, Wakefit has achieved this all organically. 

• Its revenue from COCO stores more than doubled every year from FY23 ~75 cr to FY25 ~360 cr, on average recording sales of ~3.5 cr per COCO - Regular store. These stores were being set-up with an upfront cost of 25-30 lakhs (furniture, fixtures & interior) and annual lease of ~30-40 lakhs over a typical 5 year term at interest rate ~10.5%. 

• The company targets to utilise ~192 cr over next 2 years on setting up 117 new COCO stores and lease payments for the existing COCO stores. It also plans to set up 2 COCO - Jumbo stores (IKEA like stores, with a large number of products) in Bangalore, ranging from 50,000-200,000 sq ft. The additional direct costs associated with operating COCO stores over online sales are staff salaries & fixed lease payments. However, with more of the existing stores getting mature & profitable, better realized gross margin and growth in revenues (driven by higher AOV than online channels & wider footprint), the company should achieve growth in its operating profit. It has over 58% of revenue through its own channels (website + COCO), which helps it gain better pricing, brand and control over its value chain. 

• It continues to invest in advertising & marketing with ~96 cr spent (~8% of Sales) in FY25. It was also one of the first organized players in the segment to offer a 100-day free trial and return policy for mattresses, with return and refund claim ratio ~8.5% of its gross revenue from mattresses, which had helped the company build trust and increase website sales.

Business

• It is a D2C Mattress, Furniture & Furnishings company which manufactures, operates and sells directly to its consumers.

• Its products include -
• Mattresses contributed ~61 of revenue in FY25. It includes memory foam, latex, grid, dual comfort, plus, rollup, and foldable options in various sizes & thickness. 
• Furniture contributed ~28% (FY25) of revenue. It includes beds & side tables, sofas, wardrobes, dressing tables, cabinets and shelves, kitchen, dining sets & TV units that cater to various design preferences & lifestyle needs. 
• Furnishings contributed ~11% (FY25) of revenue. It includes pillows and cushions, home essentials such as towels, mats, rugs and carpets, yoga mats, runner curtains, bathrobes, and home décor and lightings such as table décor, lights and lamps and garden décor.

• It has 5 manufacturing facilities situated in Bengaluru, Hosur (Tamil Nadu) & Sonipat (Haryana). It produced a total of 3.9 million units in FY25 and launched over 3000+ SKUs in the year. 

• It sells products through both its own channels and external channels. Own channels comprise of its Website & COCO stores, while external channels include e-com & q-com marketplaces and Multi-Branded Outlets (MBOs).
• Website - It started as an online D2C player. Its website aims to provide a seamless shopping experience, navigation and comprehensive product details with in-time delivery. It offers a 100-day free trial and return policy for mattresses. It contributed ~29% of revenue (FY25).
• COCO (Company Owned Company Operated) stores - The company sells products through its 125 physical stores (As of Sept 2025) with an average store size of 3,100 sq.ft. present in 62 cities. The company builds & operates its outlet on leased space with a typical term of 5 years. It contributed ~28% of revenue (FY25).
• Marketplaces include major e-commerce (Ex: Pepperfry Ltd) & q-commerce platforms which offer convenience and a vast variety of products online. It contributed ~38% of revenue (FY25).
• MBOs refer to outlets where multiple brands products are sold being operated by third parties (Ex: Pai International Electronics). This MBO network has grown to 1,504 stores (As of Sept 2025) in 395 cities, from its first store in Apr 2022. It contributed ~5% of revenue (FY25).

Issue Details

• Fresh Issue up to 377 cr
• Upfront Capex for setting up 117 COCO - Regular stores, on furniture, fixtures & interior. Est ~31 cr
• Estimated cost for setting up one COCO ~25 lakh
• 67 Stores to be set up in FY27 and 50 to be set up in FY28
• Expense on Lease & license fee payments for COCO - Regular stores. Est ~161 cr
• It plans to use these pay lease payments for the next 3 years.
• Purchase of new equipment & machinery for furniture manufacturing. Est ~15 cr
• Marketing & Advertisement expenses. Est ~108 cr

• Offer For Sale up to 46.75 million shares. 
• Peak XV Partners Investments VI, selling up to 20.4 million shares. MOIC ~9.5x
• Verlinvest S.A., selling up to 10.2 million shares. MOIC ~2.36x
• Ankit Garg, selling up to 7.73 million shares.
• Chaitanya Ramalingegowda, selling up to 4.45 million shares.
• Paramark KB Fund I, selling up to 2.55 million shares. MOIC ~2.4x
• Nitika Goel, selling up to 0.9 million shares. 
• SAI Global India Fund I, LLP, selling up to 0.41 million shares. MOIC ~2.27x
• Redwood Trust, selling up to 0.14 million shares. MOIC ~11.35x

Promoters and Leadership

• Wakefit innovations was founded by Ankit Garg and Chaitanya Ramalingegowda in 2016. 
• Ankit Garg serves as the Chairperson, CEO & Executive Director of the company. He completed his undergraduate from IIT Roorkee in 2010 and worked at Bayer Materials Science and J. B. Polymers before founding Wakefit.
• Chaitanya, Executive Director of the company began his career as a software engineer and pursued MBA in marketing from ISB in 2005. After completing Post graduate, he worked over 10 years in various MNCs & start-ups including Cognizant, Tapzo, Yourstory media, LetsVenture, PurpleGull services, Neotech hub, etc. in business & consultancy roles. 
• Ankit and Chaitanya are also the promoters of the company, holding ~33% and ~10% of company’s shareholding on a fully diluted basis.

Shareholding Pattern

• It raised Series A funding from Peak XV Partners Investments VI (Sequoia Capital India) ~65 cr in 2018. Further, it raised ~185 cr from Verlinvest SA with participation from Sequoia in Series B funding in 2020. 
• Subsequently, it had raised capital from SAI Global fund, Investcorp, Elevation capital, Paramark ventures, among others.

Related Party Transactions

• The company had no material related party transactions.

Litigations

• The company had no material litigations filed against it that could affect or had affected its business significantly.

Financial snapshot

Industry & Competition