Home and sleep solutions brand Wakefit has taken a big step toward becoming profitable. In the financial year 2023–2024 (FY24), the Bengaluru-based company reduced its net loss to just ₹15 crore — a massive improvement from ₹145 crore in FY23. This is almost a 90% reduction in losses, showing that Wakefit is now managing its finances much better.
At the same time, the company achieved EBITDA profitability (profit before interest, taxes, depreciation, and amortization) for the first time, earning around ₹65 crore. This shows that Wakefit has started making profits from its core business operations, even if the final net profit is still slightly negative.
Revenue Crosses ₹1,000 Crore Mark
Wakefit’s growth didn’t just come from cutting costs — the company also earned more. In FY24, Wakefit earned over ₹1,017 crore in total income, which includes both product sales and other earnings. Out of this, the revenue from selling products stood between ₹986 to ₹1,017 crore, marking a 21–24% increase compared to FY23.
Back in FY20, Wakefit was earning only around ₹199 crore. In just four years, the company has grown five times in size, thanks to its expanding range of furniture, home décor, and sleep-related products.
Multiple Sources of Income
Wakefit has also smartly created new ways of earning money. Apart from selling mattresses, beds, and furniture, the company made about ₹31 crore in “other income”. This came from interest on savings and investments, rental income, and profits from selling investments.
- Interest earned: ₹19 crore
- Profit from selling investments: ₹4.4 crore
- Rental income: ₹3.6 crore
These new income streams gave Wakefit more breathing room while it continued to grow.
IPO Plans and Public Company Status
Wakefit is also preparing for its Initial Public Offering (IPO). In June 2025, the company officially filed its IPO papers. It plans to raise ₹468 crore by issuing new shares and could raise a total of ₹1,500 to ₹2,000 crore when combined with shares sold by current investors.
Some of Wakefit’s major investors like Paramark, Verlinvest, Peak XV, Investcorp, and Redwood Trust will sell part of their shares through the IPO. Founders Ankit Garg and Chaitanya Ramalingegowda may also reduce a small portion of their holdings.
In preparation for the IPO, Wakefit changed its legal status from a private to a public limited company. It also appointed independent board members, which is a requirement for listed companies. These steps will help Wakefit operate with greater transparency and improve its reputation among future investors.
What Helped Wakefit Improve Its Financials?
Several reasons explain why Wakefit was able to reduce its losses and improve its financial health:
1. Expansion into More Products
Wakefit started as a mattress company in 2016. Now, it sells a wide range of home products, including sofas, chairs, tables, curtains, pillows, and beds. This growth into multiple product lines helped Wakefit increase its customer base and revenue.
2. Better Cost Control
The company focused on improving its cost structure. It reduced wastage, managed its logistics better, and cut down on non-essential spending. All of this helped Wakefit earn more on each product it sold.
3. Smarter Money Management
Wakefit found new ways to make money — not just by selling products, but also through rent, interest, and smart investments. This gave it a stronger financial base and supported its journey toward profit.
4. Offline Store Expansion
Wakefit didn’t just rely on online sales. It opened over 100 retail showrooms across major cities in India. These stores helped customers see and try the products before buying, boosting trust and improving sales in metro and Tier-2 cities.
Challenges Wakefit Still Faces
While the numbers look good, Wakefit is not out of the woods yet. It still reported a small net loss of ₹15 crore. Reaching net profitability (where total income exceeds all expenses) is still a key goal.
The company also faces strong competition. Brands like Pepperfry, IKEA, WoodenStreet, Duroflex, and others offer similar home and furniture products. Wakefit must work harder to keep customers loyal while maintaining its prices and quality.
Furniture is also a seasonal and cyclical category. Demand can go up and down based on festivals, economy, and even real estate trends. These factors can make it difficult for Wakefit to plan long-term sales.
Hopes for FY25 and Beyond
Despite the challenges, Wakefit expects to turn profitable in FY25. With most of the heavy investment phase now behind it, the company plans to use money from its IPO to:
- Expand into new cities and regions
- Launch more home and lifestyle products
- Improve logistics and delivery
- Strengthen its brand with advertising
- Repay any debts
Becoming a listed company will also increase Wakefit’s public visibility, making customers and investors trust the brand even more.
What This Means for Customers and Investors
For customers, this means more stores, better product availability, and possibly new categories to shop from. With the company growing rapidly and focusing on quality and price, Wakefit will likely offer even more competitive choices in the home segment.
For investors, Wakefit presents a rare opportunity to invest in a fast-growing direct-to-consumer (D2C) brand that’s close to profitability. If the company delivers on its targets in FY25, it could become one of the few Indian startups to successfully scale up and break even in a competitive market.
Summary of Wakefit’s Financial Performance
| Metric | FY23 | FY24 | Change |
|---|---|---|---|
| Revenue | ₹812–986 crore | ₹986–1,017 crore | 21–24% increase |
| Net Loss | ₹145 crore | ₹15 crore | 90% decrease |
| EBITDA | Loss | ₹65 crore profit | First EBITDA positive |
| Other Income | ₹7 crore | ₹31 crore | 4x increase |
Final Thoughts
Wakefit has shown that a startup can grow fast while becoming financially strong. With smart strategies, a focus on customer needs, and steady leadership, the company has now positioned itself to be one of India’s top furniture and home brands.
As the IPO draws closer and profits become more likely, Wakefit could soon move from being just a startup success story to a household name on the stock exchange.
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