What is Wakefit's IPO price band and market cap?

The Wakefit IPO is priced between ₹185-195, with an implied market capitalization of ₹6,373 crore at the top end.

What are the main risks Wakefit faces?

Key risks include rising inventory, high employee attrition, potential regulatory changes, and increased operational costs.

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Wakefit IPO: Mattress Maker Eyes Home Solutions Leap

Q: How will Wakefit use the IPO funds?

Funds will be used for setting up company-owned stores, lease payments, capital expenditure, and marketing to fuel expansion.

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Summary

Wakefit plans to use IPO funds for store expansion and brand building.
The company diversified into furniture and decor, aiming for broader home solutions.
Wakefit faces challenges with rising inventory and employee attrition.

Wakefit IPO: Mattress Maker Eyes Home Solutions Leap

Wakefit is launching an Initial Public Offering (IPO) to transition from a dominant online mattress seller to a diversified home solutions business, including furniture and decor. The company plans to utilize IPO proceeds for establishing company-owned stores, lease payments, capital expenditure, and marketing, signaling a strong focus on expansion and brand strengthening. This strategic move aims to capitalize on its current market position, where it's the sole D2C home furnishing company with over ₹100 crore revenue across three categories.

While Wakefit has shown impressive revenue growth, outpacing industry peers, it faces significant challenges. These include managing increasing inventory levels, which have risen substantially and led to inventory write-downs, and addressing a high employee attrition rate. The company's reliance on third-party logistics and potential raw material import risks also present hurdles, despite efforts to vertically integrate operations and source domestically.