Wakefit Converts Into Public Entity In Run-Up To IPO

Bengaluru-based D2C furniture and mattress startup Wakefit has converted into a public company as it readies for an initial public offering (IPO). 

As per the startup’s MCA filing accessed by Inc42, shareholders of Wakefit have passed a resolution to change its name ‘Wakefit Innovations Limited’ from ‘Wakefit Innovations Private Limited’ in their extraordinary general meeting on June 5.

Wakefit has reportedly picked three investment bankers – Axis Capital, IIFL Capital Services and Nomura — for the IPO and aims to raise around INR 1,500-2,000 Cr (around $173-231 Mn). 

The startup has also appointed five independent directors – Arindam Paul, Alok Chandra Misra, Sandhya Pottigari, Gunender Kapur and Sudeep Nagar. Wakefit has appointed these directors for a period of three years, as per the filing. 

Entrackr reported the development first. 

Founded in 2016 by Ankit Garg and Chaitanya Ramalingegowda, Wakefit is a D2C mattress and furniture startup which sells products such as mattresses, pillows, bed frames and mattress protectors with an aim to give a better sleeping experience to its customers.

Besides, it also offers home decor and furniture which includes sofas, study tables, bookshelves, shoe racks and TV units, among others.

The startup has raised more than $148 Mn since inception and counts the likes of Peak XV, Investcorp, Verlinvest and SIG among its investors. 

Wakefit Prepares For IPO 

Wakefit is planning to submit its draft papers in the upcoming months, however it hasn’t ascertained the timeline for the IPO launch, a Moneycontrol report said. 

The startup is also expected to give some of its early backers an exit.

On the financial front, Wakefit managed to trim its net loss on the back of its rising revenues in the financial year ending March 31, 2024 (FY24).

Wakefit reduced its loss by 90% to INR 15.05 Cr in FY24 from INR 145.68 Cr in the previous year. Its revenue from operations increased 21% to INR 986.35 Cr from INR 812.62 Cr in FY23. 

It reported INR 30.98 Cr in other income, 4X increase from the INR 7.39 Cr it made last year.

In September last year, the startup said it attained profitability at an EBITDA level as its EBITDA stood at INR 65 Cr in FY24. 

Wakefit competes with the likes of Pepperfry, SleepyCat, and WoodenStreet among others in furniture and mattress space. 

With the recent move, Wakefit has joined a bunch of startups converting into public companies ahead of their planned IPOs. Most recently, Lenskart turned into a public entity as it has initiated talks with bankers for a $750 Mn to $1 Bn IPO.

It was reported last week, fintech unicorn Moneyview has converted into a public company ahead of its expected $400 Mn raise through IPO.

Besides, SaaS unicorn Amagi, fintech unicorn Pine Labs and cloud kitchen startup Curefoods turned into public companies in the last couple of months.