Wakefit IPO: Peak XV Mints 9.5X Return, Cofounders Take Home INR 237 Cr

Wakefit IPO Day 2: Issue Subscribed 27% So Far, Retail Portion Fully Booked

SUMMARY

Peak XV Partners, which offloaded 2.04 Cr shares via the IPO, bagged 9.5X return at the upper end of the IPO price band of INR 185-195 per share

Cofounders Ankit Garg and Chaitanya Ramalingegowda together raked in INR 237 Cr through their share sale

Wakefit’s IPO comprised a fresh issue of INR 377.2 Cr and an offer for sale of up to 4.68 Cr shares

The cofounders and early investors of D2C mattress and furniture brand Wakefit, which is set to list on the exchanges on Monday (December 15), have raked in hefty returns via the IPO.

The company had set a price band of INR 185-195 for its public issue, which comprised a fresh issue of shares up to INR 377.2 Cr and an offer for sale (OFS) of up to 4.68 Cr equity shares.

Peak XV Partners emerged as the biggest gainer among institutional investors. The VC firm offloaded 2.04 Cr shares via the OFS, earning INR 397.3 Cr at the upper end of the IPO price band. This translated into a 9.5X return on its investment. Post the stake sale, Peak XV owns 4.98 Cr shares in the company, valued at INR 971.5 Cr at INR 195 apiece.

Verlinvest S.A., another key investor, sold 1.02 Cr shares to rake in INR 198.8 Cr, translating into a 2.4X gain. The Belgium-based investment firm still owns 2.04 Cr shares of Wakefit, worth INR 397.6 Cr.

US-based SAI Global India Fund I, LLP offloaded 4.1 Lakh shares, earning INR 8.1 Cr and booking a 2.3X return. The fund continues to hold 1.61 Cr shares valued at INR 314.2 Cr.

Meanwhile, South Korean VC firm Paramark Ventures’ Paramark KB Fund I sold 25.5 Lakh shares for INR 49.8 Cr, logging a 2.4X return. The investor continues to hold an equal number of shares of the company.

Among smaller investors, Redwood Trust sold 1.38 Lakh shares and earned INR 2.7 Cr, clocking 11.3X return.

Individual investor Nitika Goel emerged as a standout, selling 9 Lakh shares for INR 17.5 Cr and minting a staggering 4,875X return. Goel continues to hold 27 Lakh shares of the company, valued at INR 52.6 Cr.

Cofounders Take Home INR 237 Cr

Wakefit cofounders Ankit Garg and Chaitanya Ramalingegowda together raked in INR 237 Cr by selling partial stake through the IPO. Garg sold 77.3 Lakh shares via the OFS, earning INR 150.7 Cr. He continues to hold 9.55 Cr shares, which are valued at INR 1,862.5 Cr at INR 195 apiece. Meanwhile, Ramalingegowda offloaded 44.5 Lakh shares, earning INR 86.8 Cr.

At the upper end of the price band, the IPO values Wakefit at around INR 6,373 Cr (about $710 Mn).

Ahead of the IPO, the company raised INR 580 Cr from anchor investors, including HDFC Mutual Fund, Mirae Asset, Tata Mutual Fund, HSBC, Edelweiss, Bajaj Life Insurance, 360 ONE Equity, Nippon India and Ashoka WhiteOak, among others.

The company’s IPO was oversubscribed by 2.5X, of which the public issue received bids for 9.16 Cr shares against 3.64 Cr shares reserved.

Founded in 2016, Wakefit sells mattresses, pillows, furniture, and mattress protectors through its online platform and offline stores. The company plans to deploy a large portion of the fresh capital to expand its offline footprint, with plans to add 117 new stores.

On the financial front, Wakefit reported a net profit of INR 35.6 Cr in the first half of FY26 on an operating revenue of INR 724 Cr. In FY25, the company’s net loss widened 2.3X YoY to INR 35 Cr, while operating revenue rose 29% to INR 1,273.7 Cr.