Finshots Daily The Wakefit IPO explained
Dec 8, 2025
Discover the journey of Wakefit from its 2016 founding to a D2C home furnishings powerhouse. Explore its diverse product mix and revenue strategies, including a unique omnichannel approach. The discussion highlights its impressive revenue growth, yet raises concerns about profitability and financial metrics. Delve into the implications of its IPO, including funding allocations and long-term risks as it transitions to a public company. Will its rapid expansion translate into sustainable profitability? Tune in for insights!
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Founders' Simple Beginning
- Ankit Karg and Chaitanya Ramalinga Gowda started Wakefit in 2016 aiming to sell mattresses direct-to-consumer from Bengaluru.
- Over nine years the founders grew Wakefit into a large D2C home furnishings brand reaching 700+ districts and Rs 1,270 crore revenue.
Tri-Category Scaling And Channel Mix
- Wakefit scaled across mattresses, furniture and home essentials, each crossing Rs 100 crore in revenue, making it unique among Indian D2C players.
- It earns 65% of sales from owned channels and 35% from marketplaces, spreading risk and retaining pricing control.
Fast Growth, Uneven Profitability
- Wakefit's revenue rose from Rs 812 crore in FY23 to Rs 1,273 crore in FY25, a CAGR of ~25% outperforming organised peers.
- Rapid top-line growth, however, did not immediately translate into consistent profitability across recent years.