Wakefit Says Profit Revival Is Sustainable as Brand Accelerates Offline Expansion and Furniture-Led Growth
Home-solutions company Wakefit Innovations has asserted that its profitability turnaround is durable, not temporary, as the digital-first brand intensifies its offline push and broadens its presence across the fast-growing furniture segment. The remarks come at a crucial time as the company’s ₹1,289-crore IPO opens for public subscription, drawing heightened scrutiny over its financial resilience.
Wakefit’s Profit Turnaround Signals Structural Improvement, Not a One-Off Boost
After three years of losses, Wakefit returned to profitability in the first half of FY26, a trend the management insists is grounded in long-term fundamentals. Executive Director Chaitanya Ramalingegowda said the company’s renewed financial strength is not a “flash in the pan” but the result of deliberate investments made over the past several years.
“The losses came from doing the hard work of building the nuts and bolts for the future,” he said, emphasising that capacity expansion—rather than overspending or discount-led growth—had been the primary driver of earlier losses. With the IPO now open until December 10, the company aims to leverage new capital to scale faster and strengthen its home-solutions ecosystem.
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Offline Retail Becomes Wakefit’s Next Big Growth Engine
Despite being founded as a digital-first brand, Wakefit is now betting heavily on offline retail. The company runs around 125 company-owned experience stores and plans to deploy a significant portion of its IPO proceeds to speed up expansion.
CEO Ankit Garg said that even though online adoption has surged, large-ticket home furniture purchases remain inherently tactile. Shoppers still prefer to touch, test and compare furniture pieces before buying, especially as spend values rise.
“Stores enable consultative, high-involvement conversations that build trust and drive premiumisation,” Garg noted. Wakefit’s retail stores follow an asset-light model, carrying only minimal display units and generating payback in under a year, a rare feat in modern retail.
Expansion will be targeted toward high-potential Tier-2 and Tier-3 cities such as Jodhpur, Kota and Kashmir, with store locations selected through proprietary data models that assess local demand, revenue potential and breakeven timelines.
Furniture Emerges as the Fastest-Growing Category, Shifting the Revenue Mix
Wakefit has crossed ₹1,000 crore in revenue, posting a 25% CAGR over the last three years. While mattresses still contribute around 60% of revenue, the company expects furniture to outpace mattresses significantly in the coming years.
Furniture is already growing 10–15 percentage points faster than the mattress category, with management confident that the mix will rebalance meaningfully over the next five years. The company attributes this shift to evolving customer behaviour.
“People bought mattresses from us and then asked for pillows, bed frames, sofas and lighting,” Garg said. “That feedback pushed us from a sleep brand to a full home-solutions company.” This natural extension of the product portfolio has boosted cross-selling opportunities and repeat purchases.
Why Wakefit Believes Its Profitability Will Sustain Beyond FY26
A major drag during Wakefit’s loss-making phase was the construction and commissioning of a large furniture factory near Hosur. The plant carried full operational costs upfront even though utilisation took nearly eight quarters to reach optimal levels. Now operating across multiple shifts, the factory is contributing meaningfully to margin expansion through better fixed-cost absorption.
Additional efficiency gains have come from:
Higher manufacturing integration
In-house logistics and last-mile networks
Tighter control on delivery and service quality
Scale-driven operating leverage
Management maintains that these structural improvements—not temporary demand spikes—will support stable and improving profitability going forward. As furniture becomes a larger share of revenue, contribution margins are expected to rise steadily.
A Crowded Market but Clear Competitive Positioning
The home-furnishing and furniture market in India is becoming increasingly competitive, with global giants like Ikea and well-funded online marketplaces vying for share. Yet Wakefit believes its positioning as a design-led, affordable, deeply integrated manufacturer gives it a distinct advantage.
“We’re not traders; we’re builders,” Ramalingegowda said, underscoring Wakefit’s vertically integrated model, proprietary manufacturing and strong customer service. “The next phase of growth will be built offline — in more Indian homes and across more rooms than just the bedroom.”
As the company strengthens its presence across living rooms, dining spaces and décor categories, its strategic shift from a sleep-centric brand to a full home-solutions provider is set to redefine its long-term market visibility.
