Steadview Cap, WhiteOak, Capital 2B Invest ₹186 Cr in Wakefit via Secondary Deal Ahead of IPO

Three investors, Steadview Capital, WhiteOak Capital, InfoEdge and Temasek-backed Capital 2B, invested ₹186 crore in Wakefit Innovations Ltd through secondary market transactions, ahead of the home and furnishings company's initial share-sale opening for public subscription.

As a part of the transaction, Steadview Capital Mauritius, WhiteOak Capital and Capital 2B collectively purchased 95.57 lakh equity shares at ₹195 apiece, according to a public announcement by Wakefit.

Individually, Steadview Capital picked up shares worth ₹101 crore, WhiteOak invested ₹72 crore, and Capital 2B infused ₹13 crore.

These shares were purchased from Peak XV Partners, Redwood Trust and Verlinvest SA, and secondary share transfers were completed on December 3 and 4.

According to market sources, robust demand for Wakefit prompted several existing shareholders to offload additional shares, outside the IPO, to three new entities that subsequently became shareholders in the company.

Following this round, Wakefit on December 5 collected ₹580 crore from anchor investors, including HDFC Life Insurance, Bajaj Life Insurance, Prudential Hong Kong, 360 One, Steadview Capital, Amundi Funds New Silk Road, HDFC Mutual Fund, and Axis Mutual Fund.

The public issue comprises a fresh issue of equity shares worth up to ₹377.18 crore and an offer-for-sale (OFS) of 4,67,54,405 shares, valued at around ₹912 crore, taking the total issue size to ₹1,289 crore.

As part of the OFS, promoters Ankit Garg and Chaitanya Ramalingegowda, along with other selling shareholders -- Nitika Goel, Peak XV Partners Investments VI, Redwood Trust, Verlinvest SA, SAI Global India Fund I LLP, and Paramark KB Fund I -- will offload shares.

Following the stake sale, the promoters' holding will come down to around 37% from the current 43.70%.

Wakefit proposes to utilise the proceeds from the fresh issue worth ₹31 crore, for setting up of 117 new COCO-Regular Stores; ₹15.4 crore towards purchase of new equipment and machinery; ₹161.4 crore for expenditure for lease and sub-lease rent and license fee payments for existing stores.

Additionally, ₹108.4 crore will be used towards marketing and advertisement expenses for enhancing the awareness and visibility of the brand and the remaining amount will be used for general corporate purposes.

Last month, Wakefit raised ₹56 crore from DSP India Fund and 360 ONE Equity Opportunities Fund as part of a pre-IPO funding round.

Wakefit, which was incorporated in 2016, is one of the fastest homegrown players in the home and furnishings market in India among organised peers to achieve a total income of more than ₹1,000 crore as of March 31, 2024.

It has a wide range of mattresses, furniture, and furnishings, which it sells through both its own channels (comprising the website and COCO-Stores) and external channels (including various marketplaces, such as major e-commerce platforms and multi-branded outlets).

It is a full-stack vertically integrated company, enabling it to control every aspect of operations, from conceptualising, designing and engineering products to manufacturing, distributing and providing customer experience and engagement.

Wakefit operates five manufacturing facilities, of which two are situated in Bengaluru, Karnataka, two in Hosur, Tamil Nadu and one in Sonipat, Haryana. Its facilities are equipped with imported machinery and automation technologies, such as robotic arms and roller belts, which streamline the production process and reduce waste.

On the financial front, Wakefit reported revenue from operations of ₹724 crore and profit of ₹35.5 crore for the six-month period ended September 30, 2025.

The company will make its stock market debut on December 15.