Bengaluru’s homegrown sleep and furniture brand Wakefit has flipped the switch — it’s now a public company. This bold transition of the Wakefit IPO launch marks a defining moment in its journey, setting the stage for its much-anticipated IPO, where the firm is aiming to bag between ₹1,500 and ₹2,000 crore. That’s no small change.
The company’s name change from Wakefit Innovations Private Limited to Wakefit Innovations Limited might seem like a minor legal tweak, but it’s a critical move to get listed on India’s stock exchanges. It’s a loud-and-clear signal that Wakefit is ready to play in the big leagues.
Founded by Ankit Garg and Chaitanya Ramalingegowda back in 2016, Wakefit started as a direct-to-consumer mattress brand — think memory foam, not just marketing fluff — and quickly morphed into a full-blown home solutions company. Now, with over ₹1,017 crore in revenue for FY24 and a 90% slash in losses, Wakefit isn’t just growing — it’s hitting its stride, profitably. Five independent directors have also joined the board to give the company’s governance a professional facelift ahead of its listing.
1. Introduction
Let’s not sugarcoat it — turning public is no cakewalk. Yet Wakefit IPO launch seems unfazed. The company’s strategic pivot from private to public status isn’t just a box-checking exercise; it’s a calculated step toward raising serious capital, projected at ₹2,000 crore.
In India’s bustling startup ecosystem, where unicorn dreams and IPO headlines often outpace actual profits, Wakefit stands out. It’s managed to not only grow revenue consistently but has also wrangled its bottom line back into shape. This IPO doesn’t just reflect a market trend — it signals a new phase of maturity for Wakefit and other consumer brands climbing out of the startup trenches.
2. Company Overview
2.1 Founders and Founding Story
Ankit Garg and Chaitanya Ramalingegowda didn’t stumble into the mattress business — they dived in, eyes wide open. Frustrated by how complicated buying a decent mattress in India could be, they started Wakefit with a simple idea: quality sleep shouldn’t come at luxury pricing. They weren’t just selling beds — they were fixing a broken retail experience.
Starting small, operating mostly online, they embraced a direct-to-consumer model that cut out all the unnecessary middlemen. Fast forward a few years, and they’ve added everything from work desks to wardrobes, aiming to build a brand that redefines how middle-class India shops for home essentials. What makes them interesting isn’t just what they sell — it’s how they’ve scaled smartly, with the kind of precision rarely seen in the chaotic D2C space.
2.2 Business Model and Revenue Streams
Wakefit’s not your average furniture store or mattress dealer. It’s a full-stack operation — from designing the product to delivering it to your doorstep. No outsourcing chaos, no margin-eating middle layers.
Their revenue sources are as diversified as their inventory. Mattresses might be the bread and butter, but furniture — beds, couches, tables — adds rich toppings. The company pulls in sales through three main arteries:
- Online Marketplaces: Flipkart and Amazon contribute 30–35% of Wakefit’s revenue. It’s convenient visibility, not dominance.
- Official Website: Their platform isn’t just a catalogue — it’s a conversion engine. Built to drive trust and upselling.
- Physical Retail: With over 80 stores across India, Wakefit has bet big on an omnichannel model, and it’s paying off. Offline sales now account for nearly 70%.
Their secret weapon? A tightly-run supply chain that minimises leakages and maximises margins — a model that traditional furniture giants are still struggling to emulate.
2.3 Product Portfolio
If you thought Wakefit was just about mattresses, you’ve been sleeping on them — pun fully intended.
Their inventory spans orthopaedic mattresses, ergonomic pillows, memory foam wonders, all the way to modular sofas, coffee tables, bookshelves, and even wall decor. There’s a common theme: practical design, modern aesthetics, and wallet-friendly pricing.
In a market flooded with gimmicky sleep products and overpriced home decor, Wakefit has managed to hit that elusive middle ground — affordability without compromising substance. It’s no wonder they’ve carved out a loyal fanbase.
3. Financial Performance
3.1 Revenue Growth
While many startups burn through cash chasing growth, Wakefit seems to have figured out how to scale sustainably. In FY24, the company clocked ₹1,017 crore in revenue — a 24% jump from the previous fiscal’s ₹812 crore.
That kind of performance isn’t just “good”— it’s rare. Especially in a segment where customer acquisition costs are rising and logistics headaches are real.
3.2 Profitability Milestones
But here’s where it gets really interesting: Wakefit didn’t just grow, it also turned a financial corner. After years of riding the growth-over-profit rollercoaster, FY24 saw them post ₹65 crore in EBITDA and shrink their net loss by a staggering 90%, from ₹145 crore down to ₹15 crore.
These aren’t just accounting tricks — they reflect hard-earned operational maturity. The kind of investors love to see before an IPO.
3.3 Future Projections
Looking ahead, the company expects to touch ₹1,400 crore in revenue for FY25. That projection isn’t just a hopeful guess — it’s backed by a solid strategy involving category expansion, brand investment, and more physical stores in Tier 2 and Tier 3 cities.
Wakefit’s leadership has also hinted at breaking even at PAT level by the end of FY25 — and if they hit that target, it’ll silence even the harshest sceptics.
4. IPO Plans and Strategic Advisors
4.1 IPO Objectives
Wakefit’s IPO is aimed at raising big money — up to ₹2,000 crore. But the goal isn’t just to pad the balance sheet. Here’s what they plan to do:
- Cut Debt: Trimming liabilities means better cash flow and investor confidence.
- Expand Footprint: More stores, more cities, more customers.
- Tech Upgrades: Smarter warehousing, better CRM, and possibly AI-powered customer service.
This isn’t an IPO just for vanity metrics — it’s about scale with substance.
4.2 Appointment of Independent Directors
Good governance makes good business sense — especially when you’re courting public investors. Wakefit recently added five independent directors: Sudeep Nagar, Sandhya Pottigari, Aridam Paul, Gunender Kapur, and Alok Chandra Misra. These aren’t just ceremonial appointments. Each brings heavyweight experience that should help Wakefit navigate the sometimes brutal waters of public market scrutiny.
4.3 Selection of Investment Bankers
For a deal this size, Wakefit has wisely partnered with Axis Capital, IIFL Capital Services, and Nomura. These firms bring more than muscle — they offer strategy, valuation finesse, and access to global investor pools. And that’s exactly what Wakefit needs to pull off a high-impact IPO.
5. Competitive Landscape
5.1 Industry Overview
India’s home and sleep industry is no longer just a slow-moving, old-school sector. Thanks to a booming middle class and a post-pandemic focus on comfort, the market is now pegged to hit ₹27,533 crore by 2029. Wakefit isn’t alone — but it’s ahead of the curve.
5.2 Key Competitors
There’s IKEA, the Swedish behemoth. Then, Pepperfry, which has burned through millions trying to crack the e-commerce-home-furnishing code. Others like Duroflex, SleepyCat, and WoodenStreet are also vying for consumer attention.
But Wakefit’s edge lies in its operating model. Most rivals still depend on third-party manufacturers or fragmented logistics. Wakefit keeps it all in-house, giving them a speed and cost advantage that’s hard to replicate.
6. Industry Trends and Consumer Behaviour
6.1 Shift Towards Wellness and Quality
There’s been a seismic shift in how Indians view home spending. Sleep, once ignored, is now part of wellness. That shift favours brands like Wakefit, which offer orthopaedic support and ergonomic furniture without the ridiculous markups.
Customers want value, not cheap. And Wakefit has nailed that balance.
6.2 Growth in Tier 2 and Tier 3 Cities
Big cities are saturated. The next wave? Smaller towns. Wakefit’s seen massive spikes in demand from cities like Lucknow, Bhopal, and Jaipur. In fact, their sales in some regions have quadrupled during festive seasons — and that’s not an exaggeration.
It’s a telling sign that comfort and style aren’t just urban aspirations anymore.
7. Learning for Startups and Entrepreneurs
Wakefit’s trajectory is packed with takeaways. First, solve a real problem. Sleep deprivation, crappy mattresses, overpriced furniture — Wakefit tackled them head-on.
Second, don’t scale blindly. Their growth has always been paired with efficiency. And third, governance matters. Especially if you’re going public. Bringing in seasoned professionals isn’t just optics — it’s essential for survival.
8. Conclusion
Wakefit’s transition to a public company isn’t just a checkbox milestone. It’s a calculated leap — a bet on itself, its customers, and its future. While the road to an IPO is never smooth, Wakefit seems unusually well-prepared.
From garage startup to IPO contender — it’s a story worth watching.
9. The Startups News
Platforms like TheStartupsNews.com aren’t just reporting on Wakefit’s rise — they’re spotlighting what’s possible for Indian consumer brands. Wakefit’s IPO push sends a message to the ecosystem: profitability, product-market fit, and transparency can go hand in hand. Imagine that.
