Wakefit co-founders receive shares before IPO, Elevation ups stake via secondary deal

Wakefit co-founders Ankit Garg and Chaitanya Ramalingegowda were allotted 2.6 million equity shares through a rights issue ahead of the company’s public listing, as per its Draft Red Herring Prospectus (DRHP).

In a parallel development, existing investor Elevation Capital has acquired 2.03 lakh shares from Wakefit employees through secondary transactions since 2025. The shares were bought at Rs 1,600 apiece, valuing the transaction at around Rs 32.5 crore.

The Bengaluru-based company filed its DRHP on Thursday to raise Rs 468 crore through a fresh issue of shares. The IPO also includes an offer for sale (OFS) of 5.84 crore equity shares, with participation from Peak XV, Verlinvest, SAI Global, Parmark, and Redwood Trust, among others.

Notably, Elevation Capital is not participating in Wakefit’s offer for sale (OFS).

There have been several instances where co-founders and key managerial personnel (KMP) were allotted shares ahead of a company’s planned initial public offering. Earlier this week, Pine Labs CEO Amrish Rau also received 2.3 crore shares prior to the filing of the company’s DRHP.

Founded in 2016, Wakefit operates as a direct-to-consumer (D2C) brand focused on sleep and home solutions. Its product portfolio spans mattresses, pillows, furniture, and other home improvement goods, sold through its website, offline stores, and third-party marketplaces.

Coming to its balance sheet, in the first nine months of FY25, the company reported revenue of Rs 971 crore with a net loss of Rs 8.8 crore. Wakefit generated 54.78% of its revenue through its channels, while the remainder came from marketplaces and multi-brand outlets (MBOs)