Wakefit raises ₹186cr ahead of IPO
What's the story
Wakefit Innovations Ltd, a Bengaluru-based home and furnishings company, has raised ₹186 crore from Steadview Capital, WhiteOak Capital, and Capital 2B. The investment comes just before the company's initial public offering (IPO). As part of the deal, Steadview Capital Mauritius, WhiteOak Capital and Capital 2B acquired 95.57 lakh equity shares at ₹195 each.
Investment breakdown
IPO details and investor participation
The individual investments in this round were as follows: Steadview Capital invested ₹101 crore, WhiteOak put in ₹72 crore, and Capital 2B contributed ₹13 crore. The shares were acquired from Peak XV Partners, Redwood Trust and Verlinvest SA. Secondary share transfers were completed on December 3 and 4. After this round of funding, Wakefit raised another ₹580 crore from anchor investors, including HDFC Life Insurance, Bajaj Life Insurance, Prudential Hong Kong, among others.
IPO launch
Wakefit's IPO to open on December 8
With the anchor allocation done, Wakefit is gearing up for its ₹1,289-crore IPO. The public offering will be opened for subscription from December 8 to December 10. The company has set a price band of ₹185-195 per share for its first offering, valuing the Bengaluru-based firm at nearly ₹6,400 crore.
Issue specifics
Public issue and stake sale details
The public issue consists of a fresh issue of equity shares worth up to ₹377.18 crore and an offer-for-sale (OFS) of 4,67,54,405 shares worth around ₹912 crore. The total size of the issue is ₹1,289 crore. As part of the OFS, promoters Ankit Garg and Chaitanya Ramalingegowda will offload shares along with other selling shareholders such as Nitika Goel, Peak XV Partners Investments VI, Redwood Trust, Verlinvest SA, SAI Global India Fund I LLP, and Paramark KB Fund I.
Fund allocation
Wakefit's plans for fresh issue proceeds
Wakefit plans to use the proceeds from the fresh issue worth ₹31 crore for setting up 117 new COCO-Regular Stores. It will also spend ₹15.4 crore on new equipment and machinery, and ₹161.4 crore on lease/sub-lease rent and license fee payments for existing stores. The company will spend ₹108.4 crore on marketing/advertisement expenses to boost brand awareness visibility among other things with remaining funds going toward general corporate purposes.
Company profile
Growth and market presence
Founded in 2016, Wakefit is one of the fastest-growing players in India's home and furnishings market. The company has a diverse range of mattresses, furniture, and furnishings which it sells through its own channels (website COCO-Stores) as well as external ones (marketplaces such as Amazon, Flipkart, and multi-branded outlets). It operates five manufacturing facilities across Bengaluru, Karnataka; Hosur, Tamil Nadu; and Sonipat, Haryana.