Wakefit Ropes in Axis Capital, IIFL, and Nomura to Lead ₹2,000 Crore IPO Plans

Sleep and home solutions firm Wakefit Innovations Pvt Ltd, backed by Peak XV Partners, has formally appointed Axis Capital, IIFL Capital Services, and Nomura as its lead investment bankers as it prepares to launch its initial public offering (IPO). The company, founded in 2016, is seeking to raise approximately ₹1,500 to ₹2,000 crore, equivalent to nearly $200 million, from the public markets. Sources close to the matter confirmed the appointment of the three financial advisors and emphasized that the IPO process is in its early stages, with regulatory documentation expected to follow in the coming months.

Wakefit’s move to initiate IPO proceedings is part of a broader trend among Indian consumer tech and D2C (direct-to-consumer) startups that are capitalizing on improved market sentiment and investor appetite. As part of its IPO structure, Wakefit is likely to explore a mix of fresh equity issuance and an offer-for-sale (OFS) component, although the final structure is yet to be determined. The public issue is also expected to enable a partial exit for some of Wakefit’s early institutional investors, including Peak XV Partners, Paramark Ventures of South Korea, and European investment firm Verlinvest.

Highlights:

• Wakefit appoints Axis Capital, IIFL Capital Services, and Nomura for IPO advisory

• Target IPO size between ₹1,500–2,000 crore (~$200 million)

• IPO to include both fresh issuance and offer-for-sale, details pending finalization

• Early investors including Peak XV and Verlinvest may partially exit

Rapid Financial Growth Positions Wakefit as a Strong IPO Candidate

Since its inception, Wakefit has transformed from a niche mattress brand into a full-fledged home solutions enterprise, offering furniture and lifestyle products such as cots, work-from-home desks, ergonomic chairs, and wardrobes. This diversification strategy has significantly contributed to the company’s growth in topline revenue, with FY24 revenue clocking in at ₹1,017 crore, up from ₹199 crore in FY20. This more than fivefold increase over four financial years underscores Wakefit’s ability to capture and expand its market share in a highly competitive sector.

In parallel, Wakefit has also made impressive strides in its bottom line, reducing its net losses from ₹146 crore in FY23 to just ₹15 crore in FY24, according to filings with regulatory authorities. This sharp decline in losses, especially as revenue soared, is seen as a strong indicator of the company’s operational efficiency and maturing business model—factors that are increasingly important to public market investors. As it gears up for a listing, Wakefit’s profitability trajectory will likely remain under close scrutiny from potential shareholders and analysts alike.

Highlights:

• FY24 revenue surged to ₹1,017 crore from ₹199 crore in FY20

• Net losses reduced from ₹146 crore in FY23 to ₹15 crore in FY24

• Product expansion into furniture and home essentials boosted top-line growth

• Financial turnaround improves appeal ahead of IPO listing

Competitive D2C Landscape and Strategic Positioning in Home Furnishing

Wakefit operates in a high-growth D2C market that has seen rising consumer demand for home furnishing and comfort solutions, particularly in the post-pandemic era. The company faces stiff competition from both domestic and global players, including Premji Invest-backed The Sleep Company, Westbridge Capital-funded WoodenStreet, and Swedish multinational IKEA, which has been increasing its footprint in India through physical retail and digital channels. Despite the intense competition, Wakefit has carved out a unique identity by leveraging a vertically integrated model, digital-first distribution, and strong brand recall.

What sets Wakefit apart in this space is its focus on affordable innovation, with the company often introducing ergonomically optimized products at price points suitable for India’s expanding middle class. Its ability to maintain competitive pricing while scaling operations across categories has made it a favorite among value-conscious Indian consumers. As the company steps into public markets, it will rely on these differentiators to sustain momentum and build long-term investor confidence.

Highlights:

• Competes with The Sleep Company, WoodenStreet, IKEA, and others

• Operates on a D2C model with in-house manufacturing and digital distribution

• Focus on ergonomic, value-priced products for India’s middle-class households

• Maintains strong brand recall and customer retention

Wakefit Rides the Wave of India’s Robust Startup IPO Momentum

Wakefit’s IPO plans are part of a broader resurgence in India’s startup listings, which have gained pace amid renewed market enthusiasm and robust institutional participation. According to data from investment bank Avendus, 13 startups—including Swiggy, Mobikwik, and Ola Electric—have already raised over ₹29,000 crore (approximately $3.4 billion) through IPOs in 2024 alone. This is a sharp jump from just five IPOs in 2023 and two in 2022, highlighting the improving investor sentiment and liquidity conditions in India’s capital markets.

The surge in startup IPOs is occurring despite ongoing global economic uncertainties, such as interest rate volatility and geopolitical instability. Domestic investors, however, continue to show confidence in the long-term potential of India’s consumer tech and services startups. The IPO pipeline for 2025 is expected to be even more robust, with market intelligence suggesting that as many as 25 startups could go public during the year. Among the high-profile names being tracked are Flipkart, Oyo, and PhonePe, which together represent over $100 billion in private market valuation.

Highlights:

• 13 startup IPOs in 2024 raised ₹29,000 crore (~$3.4 billion)

• 2024 IPO volume already exceeds combined total of 2023 and 2022

• At least 25 startups likely to list in 2025, per industry estimates

• Flipkart, Oyo, and PhonePe are among the anticipated mega listings

Investors, Bankers, and Startups Bullish on Market Participation in 2025

The consistent uptick in startup IPO activity reflects strong alignment between founders’ exit goals, investor return expectations, and capital market readiness. Venture capital and private equity firms have been supportive of IPOs as an exit route, while investment banks continue to build dedicated teams focused on managing tech listings. Wakefit’s IPO will be a key test of investor appetite for profitable or near-profitable consumer tech companies with strong fundamentals.

Bankers anticipate that Indian stock exchanges will remain attractive listing destinations, owing to their large and diverse retail base, increasing FPI participation, and high secondary market liquidity. This bullishness on the IPO front is also shared by private equity investors who are scouting for mature startups with scalable revenue models and established governance structures. Wakefit, with its growth trajectory and improving financials, appears to fit that profile well.

Highlights:

• Alignment growing between startup founders, VCs, and market expectations

• Investment banks building IPO pipelines for new-age companies

• Indian exchanges remain favorable due to deep liquidity and investor diversity

• Wakefit seen as a viable candidate among profitable D2C startups