The initial public offering (IPO) also includes a ₹200-crore pre-IPO round that will see participation from foreign and domestic institutional investors before the anchor investor portion opens, two of the people said, requesting anonymity. They added that the IPO will comprise primary and secondary share sales.
The company had earlier filed draft papers with the regulator in June, where it outlined plans to raise ₹468.2 crore in primary money to more than double its store count. Adding in secondary transactions, the total issue size now stands at ₹1,400 crore, according to the people cited earlier.
Wakefit declined to comment on the development.
The Bengaluru-headquartered company joins a growing list of startups that is looking to tap the public market. In recent weeks, several companies including Lenskart, Groww, PhysicsWallah, Meesho, Fractal Analytics have either gone public or are in the process of doing so in the current quarter, marking one of the busiest periods in the capital markets this year.
The first two quarters of 2025 (January-June) saw nine issues each, followed by 46 listings in the July-September quarter, and 25 so far in the current ongoing quarter, according to data shared by Prime Database earlier this week. That is higher than the 91 listings in the entire 2024, according to Primedatabase.
The company has appointed Axis Capital, IIFL Securities, and Nomura to help with the issue.
The IPO will also see an offer-for-sale (OFS) where its current owners including founders and major private equity investors will collectively sell about 58.4 million shares.
Wakefit’s promoters Ankit Garg and Chaitanya Ramalingegowda and investors including Peak XV, Investcorp, Verlinvest, Paramark KB, and SAI Global India Fund, among others, are expected to sell under the offer for sale (OFS).
The company had raised multiple rounds of capital from these marquee investors from 2018 to 2023. In the last round in January 2023, Wakefit raised ₹320 crore from investors led by Investcorp, with participation from existing investors—Sequoia Capital India, Verlinvest, and SIG.
Founded in 2016, Wakefit sells mattresses, beds, sofas, and home furnishings under its flagship brand, largely through its own website and app. It has expanded sales to a mix of e-commerce, experience centres, and company owned and operated stores.
The company reported an income of ₹994.3 crore and a net loss of ₹8.8 crore in the first nine months of FY25, according to the draft prospectus. In the previous fiscal, total income was at ₹1,017.3 crore, up from ₹820 crore in FY23, while net loss narrowed to ₹15.05 crore from ₹145.68 crore in the same period.
The pre-IPO lure
Mint had reported earlier this week that big investors are swooping in on companies right before their IPOs open, locking in shares that would be harder to get once subscriptions start.
In such transactions often called pre-IPO placements, investors snap up unlisted shares on the eve of an IPO. This is different from pre-IPO fundraises in which investors buy 12-18 months before the IPO, and anchor investments where large investors buy shares reserved for institutions in IPOs.
Commenting on this trend for the earlier Mint report, Prakash Bulusu, joint chief executive officer (CEO) of IIFL Capital had said, “As public market sentiment has turned constructive and new listings are seeing healthy subscription and after-market performance, institutional investors are looking to secure allocations ahead of the anchor book.”
He further explained that such deals allow them to lock into valuations that are often perceived to be more attractive than post-listing levels, while also building a relationship with the company early.
“In the recent set of listings across tech-enabled financial services, healthcare platforms, and premium consumer brands, this pattern has been visible—where late-stage investors have come in just weeks or months before the draft red herring prospectus roadshow,” he said.
Akhoury Winnie Shekhar, Partner at CMS INDUSLAW had also echoed similar sentiments. “We are seeing a clear uptick in pre-IPO funding rounds among companies with strong growth narratives and sustained investor appetite….” Shekhar had said, adding that a number of these rounds now feature both primary and secondary components, allowing early investors and employees to unlock partial liquidity ahead of listing.
This also comes against the backdrop of recent regulatory developments, including Sebi’s direction restricting mutual funds from participating in pre-IPO placements with investment activity likely shifting towards alternative pools such as AIFs and PMS.
Buoyant primary market
Broadly, India’s IPO market has been buoyant this year after a slower start. According to a Bernstein report, Indian companies have raised $14 billion in 2025 via IPOs, ranking fourth globally behind the US ($53 billion), Hong Kong ($23 billion) and China ($16 billion).
According to Primedatabase, last year the total IPO fundraise was ₹1,59,784 crore.
The year has seen marquee listings from companies such as JSW Cement Ltd, Tata Capital Ltd, Ather Energy Ltd and LG Electronics India Ltd.
Other prominent issues include HDB Financial Services Ltd, Indiqube Spaces Ltd, Bluestone Jewellery and Lifestyle Ltd, We Work India Ltd, Smartworks Ltd, Orkla India Ltd and Hexaware Technologies Ltd.
At least 30 more companies, including Wakefit Innovations Ltd, Milky Mist Dairy Food Ltd, Curefoods India Ltd, Shiprocket, Capillary Technologies, Shadowfax Technologies Ltd and Gaja Capital Ltd have received regulatory approval in the past six months, paving the way for a potential listing next year, the data showed.