Bengaluru-based direct-to-consumer sleep and home solutions brand Wakefit has officially filed its Red Herring Prospectus (RHP) and trimmed its much-anticipated IPO size to up to ₹1,000 crore from the earlier talked-about ₹1,400-1,500 crore. The public issue will open on December 8, 2025, and close on December 10, with the anchor book opening a day earlier on December 5.
The revision comes after the company received SEBI’s final observations in November 2025, clearing the last regulatory hurdle. While the exact break-up between fresh issue and offer-for-sale (OFS) is yet to be disclosed in the RHP, early reports suggest the fresh issue component has been brought down significantly, with promoters and early investors likely offloading a larger portion through OFS to provide partial exits.
Wakefit, founded in 2016 by Ankit Garg and Chaitanya Ramalingegowda, has carved a niche in the fast-growing Indian sleep solutions market with its range of mattresses, furniture, and home décor sold primarily online. The brand claims to have sold over 2 million mattresses and built a loyal customer base through quirky marketing and aggressive pricing.
The company closed FY25 (April 2024–March 2025) with revenue of approximately ₹1,200 crore, registering 25% year-on-year growth despite a challenging funding winter for consumer brands. EBITDA margins have reportedly improved to low double-digits as Wakefit tightened costs and expanded its offline footprint to over 70 experience centres across India.
Proceeds from the fresh issue will primarily fund expansion into Tier-2 and Tier-3 cities, setting up new experience centres, boosting manufacturing capacity in Bengaluru and northern India, and driving omnichannel growth. The company is also betting big on its newly launched sub-brands in furniture and home décor to diversify revenue streams beyond mattresses, which still contribute over 70% of sales.
At the upper end of the indicated valuation band of ₹5,000-6,000 crore, Wakefit will be priced at roughly 4–5 times FY25 sales — a sharp discount compared to many new-age consumer IPOs of the 2021-22 bull run, reflecting the sobered market sentiment of 2025. Analysts believe the trimmed size and realistic valuation could help the issue sail through in a market that has turned cautious on profit-less growth stories.
Kotak Mahindra Capital, JM Financial, ICICI Securities, and IIFL Securities are the book-running lead managers.
With the IPO, Wakefit joins the growing list of profitable D2C brands such as Mamaearth (Honasa), Boat, and Nykaa that have braved public markets in recent years. Investors will watch closely whether Indian consumers’ love for better sleep translates into love for the stock on listing day.
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Last Updated on: Tuesday, December 2, 2025 6:59 pm by BUSINESS SAGA TEAM | Published by: BUSINESS SAGA TEAM on Tuesday, December 2, 2025 6:58 pm | News Categories: Startup News
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