The brand that spent the last decade fixing India’s sleep schedule will be finally ringing the opening bell. Wakefit Innovations Ltd., the Bengaluru-based D2C giant that turned mattress shopping from a mundane chore into a digital revolution, is hitting Dalal Street with a massive ₹1,288.89 crore IPO.
From its humble beginnings in 2016 to becoming a household name in home solutions, Wakefit’s journey has been a dream run for its founders. But now, as the company gears up for its most ambitious phase, pivoting from online dominance to aggressive offline expansion, investors are facing a critical decision.
With a mix of fresh capital injection (₹377.18 crore) and existing shareholders cashing out (₹911.71 crore), the big question remains: Is this stock a dream buy for the long term? The following sections outline Wakefit’s business model, financial performance, competitive strengths, and key IPO details as per the Red Herring Prospectus (RHP).
Company Overview
Wakefit Innovations Ltd. builds and sells a wide range of home and sleep products under its D2C (Direct-to-Consumer) model, prioritising affordability, innovation, and customer satisfaction.
Product Portfolio:
- Mattresses
- Furniture (beds, sofas, tables, wardrobes, etc.)
- Furnishings
Wakefit sells across 700 districts in 28 states and 6 union territories. As of September 30, 2025, Wakefit operates across:
- 125 stores across 62 cities in 19 states and 2 UTs
- Vertically integrated operations enabling product quality control and cost efficiency
Promoters of the company include Ankit Garg and Chaitanya Ramalingegowda.
(Source: RHP)
Industry Context
India’s home and furniture market continues to grow due to:
- Rising urbanisation
- Shift to organised home solutions
- Rapid adoption of D2C brands
- Increased focus on comfort, ergonomics, and home aesthetics
Wakefit Benefits From:
- Consumer preference for online furniture discovery
- Growing demand for quality sleep products
- Expansion into modern retail formats
Wakefit IPO Details
Below are the key details regarding the Wakefit Innovations Ltd. IPO:
| Detail | Information |
|---|---|
| Opening Date | Mon, Dec 8, 2025 |
| Closing Date | Wed, Dec 10, 2025 |
| Price Band | ₹185 – ₹195 per share |
| Issue Size | ₹1,288.89 Cr (Fresh + OFS) |
| Lot Size | 76 shares per lot |
| Minimum Investment (Retail) | ₹14,820 |
| Listing Exchanges | BSE & NSE |
| Expected Listing Date | Mon, Dec 15, 2025 |
(Source: RHP | Chittorgarh)
Business Strengths
- Leading D2C Home Solutions Brand: A dominant name in affordable sleep and home furniture products.
- Comprehensive Product Portfolio: Mattresses, furniture, furnishings, covering end-to-end home needs.
- Vertically Integrated Supply Chain: In-house manufacturing, R&D, and logistics efficiency.
- Strong Omnichannel Strategy: 125 stores + robust digital presence.
- Innovation-Led Brand: Strong marketing, customer experience, and product development.
Risks and Challenges
- Negative Profitability Trend: Despite revenue growth, FY24–FY25 saw losses.
- High Competition: Faces competition from Pepperfry, IKEA, Urban Ladder, D2C brands, and the unorganised sector.
- Capital-Intensive Expansion: COCO (Company Owned, Company Operated) stores and logistics require substantial investment.
- Volatility in Raw Material Costs: Foams, fabrics, wood, etc. impact margins.
- Dependence on E-commerce: Online-driven sales fluctuate with consumer sentiment.
Financial Performance
A summary of the financial assets, income, and profit trends over the last few years (Amounts in ₹ Crore):
| Period Ended | 30 Sep 2025 | 31 Mar 2025 | 31 Mar 2024 | 31 Mar 2023 |
|---|---|---|---|---|
| Assets | 1,220.34 | 1,050.75 | 928.3 | 791.8 |
| Total Income | 741.3 | 1,305.43 | 1,017.33 | 820.01 |
| Profit After Tax | 35.57 | -35 | -15.05 | -145.68 |
(Source: RHP, amount in ₹ crore)
Key Ratios & Metrics (as of March 31st, 2025)
Despite a healthy operating performance reflected by an EBITDA margin of 7.13%, the company is facing profitability challenges at the net level, posting a PAT margin of -2.75%.
This struggle is further evidenced by negative return ratios, including an ROE of -6.58%, RoNW of -6.72%, and a ROCE of -0.68%. However, the company maintains a manageable leverage profile with a Debt-to-Equity ratio of 0.53 against a total market capitalisation of ₹6,373.16 Crore.
Market Outlook & GMP Trends
Early trends from the unregulated market suggest a healthy appetite for the Wakefit Innovations IPO. As of 10:30 AM on December 4, 2025, the Grey Market Premium (GMP) was hovering at ₹36 per share, according to data from InvestorGain.
With the issue price capped at ₹195, the stock is currently signalling a potential debut price of ₹231. If these trends hold, allottees could see a listing gain of approximately 18.46%.
(Note: GMP is an unofficial indicator based on speculation and may change)
The Bottomline
The Wakefit Innovations IPO offers investors exposure to a high‑growth D2C home solutions brand with strong distribution and product capabilities. However, persistent losses, capital‑intensive expansion plans, and competitive pressures indicate higher risk. It might be suitable for long‑term investors with a higher risk appetite.
Disclaimer: Investments in the securities market are subject to market risks, read all the related documents carefully before investing. This content is purely for information purposes only and in no way to be considered as an advice or recommendation. The securities are quoted as an example and not as a recommendation. Investors are requested to do their own due diligence before investing.
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