In a blockbuster prelude to its blockbuster public debut, Bengaluru-based D2C furniture and mattress powerhouse Wakefit Innovations has scooped up a whopping ₹580 crore from 33 anchor investors at the upper price band of ₹195 per share. This pre-IPO windfall, disclosed via BSE filing on December 5, 2025, underscores sky-high institutional faith in the nine-year-old disruptor, whose IPO kicks off on December 8 and wraps December 10, with shares slated to list on December 15. The haul covers 45% of the ₹1,289 crore issue, allotting 2.97 crore equity shares and valuing Wakefit at nearly ₹6,400 crore—a testament to its evolution from a bootstrapped mattress maker to India’s sleep solutions sultan.
Co-founded in 2016 by Ankit Garg (CEO & Chairperson, 33% stake) and Chaitanya Ramalingegowda (Co-founder & ED, 10% stake), Wakefit has redefined home comfort with a vertically integrated empire spanning design, manufacturing, and omnichannel sales. From its flagship memory foam mattresses to ergonomic beds, sofas, and pillows, the brand’s portfolio—sold via 117 company-owned stores, e-commerce giants, and its slick app—has furnished over 50 lakh homes. Garg’s vision? “Sleep is non-negotiable; we’re making premium rest accessible,” he once quipped, fueling a direct-to-consumer model that bypasses middlemen for 40% margins. The company’s FY25 revenue rocketed to ₹1,273 crore (up 40% YoY), with H1 FY26 adding ₹724 crore and a tidy ₹35.5 crore profit—flipping black ink amid a post-pandemic home revamp boom.
The anchor frenzy? A masterclass in domestic dominance: 54.3% (₹315 crore, 1.61 crore shares) snapped up by nine mutual funds across 21 schemes, led by heavyweights like HDFC MF, Axis MF, Mirae Asset MF, Nippon India MF, Tata MF, HSBC MF, Bandhan MF, Edelweiss MF, and Mahindra Manulife MF. The rest flowed to insurers (HDFC Life, Bajaj Life), global funds (Prudential Hong Kong, Amundi Funds New Silk Road), and VCs like Steadview Capital, 360 ONE Equity, Ashoka WhiteOak, and Nippon India. This mutual fund stampede—echoing the 50%+ domestic buy in recent IPOs like Swiggy—signals bulletproof demand in a market craving profitable D2C tales. 🏦 Anchor Investor Allocation – ₹580 Cr ┌────────────────────────────────────────────────────┐ │ Domestic Mutual Funds │ 54.3% │███████████│ │ Foreign Investors │ 28.1% │██████ │ │ Insurance Companies │ 9.8% │██ │ │ Others (VCs, HNIs) │ 7.8% │█ │ └────────────────────────────────────────────────────┘ Total shares allotted: 2.97 crore @ ₹195
The ₹1,289 crore IPO splits into a ₹377 crore fresh issue (dilution for growth) and ₹912 crore OFS (exits for promoters and early birds). Selling shareholders include Garg and Ramalingegowda (cashing ~₹86.8 crore on his 44 lakh shares, bought at ₹0.04!), Nitika Goel, Peak XV Partners VI, Redwood Trust, Verlinvest SA, SAI Global India Fund I, and Paramark KB Fund I. Post-IPO, promoters’ stake dips to 37% from 43.7%, per disclosures. Fresh proceeds? A strategic quad: ₹31 crore for 117 new COCO stores (eyeing 500 by 2027); ₹15.4 crore for machinery upgrades; ₹161.4 crore for lease/rent on existing outlets; and ₹108.4 crore for turbocharged marketing to amp brand buzz. Balance for corporate war chest.
This caps a stellar pre-IPO sprint: Last month, Wakefit bagged ₹56 crore from DSP India Fund and 360 ONE Equity in a bridge round, swelling total funding to ~₹1,000 crore from backers like Verlinvest and Peak XV. In India’s $15 billion home furnishings fray—rivaling Pepperfry and Urban Ladder—Wakefit’s edge shines: 70% online sales, 2,000+ SKUs, and a 25% market share in online mattresses. FY25’s 40% revenue leap (from ₹908 crore) and profitability pivot (from losses) mirror D2C maturation, per analysts.
Yet, skeptics eye execution: Intense competition, inventory bloat, and e-comm shifts. But with 90% NPS and 1 million+ annual orders, Wakefit’s playbook—data-driven personalization, quick delivery—positions it for unicorn redux. As Garg eyes listing glory, this anchor avalanche isn’t hype; it’s a wake-up call for sleepy investors. December 8: Lights out on private status?
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Last Updated on: Saturday, December 6, 2025 4:01 pm by BUSINESS SAGA TEAM | Published by: BUSINESS SAGA TEAM on Saturday, December 6, 2025 4:01 pm | News Categories: Startup News
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