The Indian home and furnishings leader Wakefit Innovations https://www.wakefit.co/ has successfully raised approximately $6.7 million (Rs 56 crore) in a pre-Initial Public Offering (IPO) funding round, bolstering its balance sheet ahead of its public debut. The transaction, which values the company at around $767 million (Rs 6,408 crore), is particularly noteworthy for the MENA region due to the confirmed role of Bahrain-headquartered Investcorp as a key selling shareholder in the upcoming IPO.
The recent funding was led by DSP India Fund and 360 ONE Equity Opportunities Fund. This placement is strategically timed as Wakefit prepares for a significant public issue, which will include both fresh capital and a secondary share sale providing partial exits to early investors.
Investcorp’s Successful Investment Trajectory
The highlight for the MENA tech investment community is the anticipated exit of Investcorp, a global alternative investment manager based in Bahrain. Investcorp was the lead investor in Wakefit’s $40 million (Rs 320 crore) Series D funding round in January 2023. The firm’s successful backing of the D2C brand highlights the effectiveness of high-conviction global investment strategies deployed by major financial institutions in the Gulf.
Investcorp, through its various funds, is set to offload approximately 6.18 million shares in the IPO’s Offer-for-Sale (OFS) component, demonstrating a realized, multi-fold return on an investment made less than two years prior. This event serves as a strong case study for MENA founders on attracting, and successfully exiting with, global institutional capital.
Structure of the Upcoming Public Offering
Wakefit’s IPO, which has received regulatory approval, is targeting a total raise of approximately $192 million (Rs 1,607 crore). The offering is divided into a fresh issue of new shares by the company, valued at $56.1 million (Rs 468.22 crore), and the aforementioned Offer-for-Sale (OFS), where existing shareholders, including Investcorp, Peak XV Partners, and Verlinvest, will sell up to 5.8 crore equity shares. The fresh proceeds are clearly earmarked for aggressive growth initiatives.
Strategic Capital Allocation for Omnichannel Growth
The core purpose of the primary capital raised is to fuel Wakefit’s transformation into a dominant omnichannel retail force. The company plans to significantly expand its physical retail footprint by rolling out 117 new Company-Owned and Company-Operated (COCO) stores and one COCO jumbo store. This expansion strategy, which will also cover machinery procurement, lease payments for existing stores, and marketing initiatives, underscores the view that in India’s complex retail landscape, market leadership requires a seamless blend of online convenience and a robust physical presence.
About Wakefit Innovations
Founded by Chaitanya Ramalingegowda and Ankit Garg, Wakefit Innovations is a direct-to-consumer (D2C) home and sleep solutions company based in India. The company began with mattresses and has since grown its portfolio to include a comprehensive range of furniture, home accessories, and furnishings. Through its focus on quality, transparency, and a fast-growing omnichannel strategy, Wakefit has established itself as one of the largest and fastest-growing homegrown D2C brands in the Indian consumer retail market.
Source: TechStory
