Wakefit co-founders allotted shares ahead of IPO; Elevation Capital increases stake through secondary deal

Wakefit’s co-founders, Ankit Garg and Chaitanya Ramalingegowda, have been allotted 2.6 million equity shares through a rights issue ahead of the company’s planned initial public offering (IPO), according to its Draft Red Herring Prospectus (DRHP).

Simultaneously, existing investor Elevation Capital increased its stake in the Bengaluru-based company by acquiring 2.03 lakh shares from Wakefit employees through secondary transactions since 2025. These shares were purchased at Rs 1,600 per share, amounting to a transaction value of around Rs 32.5 crore.

Wakefit filed its DRHP on Thursday to raise Rs 468 crore through a fresh issue of shares. The IPO will also include an offer for sale (OFS) of 5.84 crore equity shares, with participation from investors such as Peak XV, Verlinvest, SAI Global, Parmark, and Redwood Trust, among others. Notably, Elevation Capital will not be participating in the OFS.

Such allotments of shares to co-founders and key managerial personnel ahead of an IPO are not uncommon. Earlier this week, Pine Labs CEO Amrish Rau also received 2.3 crore shares before the company filed its DRHP.

Founded in 2016, Wakefit is a direct-to-consumer (D2C) brand specializing in sleep and home solutions. Its products include mattresses, pillows, furniture, and home improvement goods, sold via its own website, offline stores, and third-party marketplaces.

On the financial front, for the first nine months of FY25, Wakefit reported revenue of Rs 971 crore and a net loss of Rs 8.8 crore. Of its total revenue, 54.78% was generated through its own channels, while the rest came from marketplaces and multi-brand outlets (MBOs).