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IPO-bound Wakefit reported a net loss of INR 8.8 Cr in the first nine months of the financial year ended March 2025 (9M FY25). Its revenue from operations stood at INR 971 Cr during the period, as per the company’s DRHP filed with SEBI.

Including other income of INR 23 Cr, the company’s total income stood at INR 994 Cr in 9M FY25.

For context, the D2C company reported a net loss of INR 15 Cr in FY24 on an operating revenue of INR 986.3 Cr. Its total income stood at INR 1,017 Cr.

The company filed the draft papers yesterday for its IPO. The public issue will comprise a fresh issue of up to INR 468.2 Cr and an OFS of up to 5.8 Cr shares. Promoters Ankit Garg, Chaitanya Ramalingegowda, and investors like Peak XV Partners, Redwood Trust, Paramark, and Verlinvest will pare their stake via the OFS.

The money will go towards expanding its retail footprint with over 100 new stores, upgrading equipment, paying leases, and increasing brand visibility.

Notably, Wakefit may also raise INR 93.6 Cr via a pre-IPO placement, which would reduce the fresh issue size.

Founded in 2016 by Garg and Ramalingegowda, Wakefit started as a D2C mattress company. It has now turned into a full-stack home solutions business that designs, manufactures, sells and delivers everything from mattresses and sofas to curtains, lamps, wardrobes and kitchenware.

Wakefit owns its design, manufacturing, warehousing, logistics and retail operations. This vertical integration has enabled it to keep prices competitive, ensure consistent quality and speed up product development.

The company now offers more than 3,000 SKUs (stock keeping units), including tech-enabled products like smart mattresses with built-in temperature control and sleep tracking.

The company claims to be the only Indian D2C brand with INR 100+ Cr revenue from each of the three categories it operates in FY24 – mattress, furniture and furnishing.

Mattress is the core product of the company, ranging from memory foam and orthopaedic to smart versions with temperature control and sleep tracking. The company earned INR 604.18 Cr from the sale of mattresses in 9M FY25, accounting for 62.2% of operating revenue.

Meanwhile, furniture brought in INR 260.65 Cr, making up 26.8% of the revenue. Wakefit’s furniture range includes beds, wardrobes, sofas, and desks.

Furnishing brought in revenue of INR 106.26 Cr, accounting for 10.9% of the operating revenue. The company sells pillows, curtains, rugs, and kitchenware under this segment. Though these items are lower in price, they are purchased more frequently, helping the startup drive repeat business and increase overall order value.

The company operates over 130 company owned company operated (COCO) stores across India, with plans to expand aggressively using the proceeds from its upcoming IPO. It also sells its products through more than a thousand multi-brand outlets and is eyeing to grow its online footprint.

Specifically, Wakefit plans to use INR 82 Cr of its IPO proceeds to establish 117 new COCO regular stores and one jumbo COCO store.

The company’s manufacturing units are located in Bengaluru, Hosur and Sonipat. Wakefit’s main warehouse is in Hosur, with additional inventory centres and delivery hubs across major cities.

The company’s total expenses for the period under review stood at INR 1,003.2 Cr. The number stood at INR 1,032.4 Cr in FY24.

Here is a breakdown of the expenses of the company in 9M FY25:

Cost Of Materials: Being a manufacturing company, this was the biggest expense for Wakefit. It spent INR 446.9 Cr on materials during the period under review.

Staff Costs: The company’s employee expenses stood at INR 125.7 Cr in 9M FY25. Of this, it spent INR 105.5 Cr on salaries, wages, and bonuses.

Advertising: The company spent INR 82.6 Cr on advertising and business promotion during the period under review.

Courier & Delivery Charges: The expenses under this subhead stood at INR 74.9 Cr.

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