Wakefit Picks Axis Capital, IIFL, and Nomura to Handle its Upcoming IPO

Wakefit, a startup that sells sleep and home products, has chosen three investment banks to help with its IPO as it plans to join the rising number of modern companies preparing to go public, as per the sources.

The company has begun the process by appointing Axis Capital, IIFL Capital Services, and Nomura as advisors for its IPO.

Wakefit is now expected to submit its draft papers in the upcoming months. However, the official timings are yet not decided. As per the sources, the company is anticipated to increase by approximately Rs 1,500-2,000 crore, or about $200 million, through an Initial Public Offering (IPO).

It has not been decided yet how much of the IPO will be new shares (primary portion) and how much will be existing shares sold by current investors (OFS). Wakefit, which has increased more than $100 million (about Rs 850 crore) from investors such as Peak XV Partners, Paramark Ventures from South Korea, and Verlinvest from Europe, plans to give some of its early investors a chance to sell their shares and exit.

Wakefit, as an Indian firm, was founded by Ankit Garg and Chaitanya Ramalingegowda in 2016 and began as a mattress company but then stepped into ancillary products such as cots, tables, chairs and other home furnishing categories to enhance its top line.

The company’s revenue grew from Rs 199 crore in FY20 to Rs 1,017 crore in FY24. During the same period, it reduced its losses from Rs 146 crore in FY23 to just Rs 15 crore in FY24, according to regulatory filings.

It competes in a rapidly growing market with companies like Sleep Company (backed by Premji Invest), WoodenStreet (funded by Westbridge), and global brand IKEA.

IPO pipeline

Wakefit is the latest modern startup to take steps toward raising money from market investors. In 2024, 13 startups, including Swiggy, Mobikwik, and Ola Electric, raised over Rs 29,000 crore (about $3.4 billion) through the stock market, according to data from investment bank Avendus.

This is a big jump compared to just five IPOs in 2023 and only two in 2022.

Despite global economic uncertainty, investors, bankers, and startups are still positive about more IPOs coming in 2025.

As per the reports, around 25 startups are expected to go public this year. Over the long term, major startups valued at $100 billion in total, such as Flipkart (owned by Walmart), Oyo, and PhonePe, are also preparing to launch their IPOs, according to a Bloomberg report.