Peak XV-backed Wakefit has become the first new-age furniture and mattress brand to file for an initial public offering (IPO). While Sheela Foam, the 50-year-old category leader in the mattress segment, went public in 2020, Wakefit is on track to be the first new-age D2C furniture brand to make such a move in the space.

Following the footsteps of Mamaearth, Nykaa, and FirstCry, Wakefit is now set to carry forward the D2C IPO momentum. However, what’s worth noting is that Wakefit operates in what is considered a more tougher market compared to those peers.

In India’s 116 Bn ecommerce market, which has witnessed a D2C revolution in recent years, the growth of the furniture and home decor segment has remained largely muted. The segment has consistently fallen behind the fashion, beauty, and electronics goods markets.

In fact, as the Indian ecommerce sector grows to surpass $400 Bn in size by 2030, the furniture and home decor segment is expected to comprise only 6% of the total market share.

Not to mention, the online retail market for furniture presents challenges, including supply chain issues, price sensitivity, varied customer preferences based on culture and geography, and intense competition from unorganised players.

As a result, many companies have struggled to scale, and consolidation is quite a common spectacle in this space.

For context: Sheela Foam acquired Kurlon in 2023, HomeLane acquired Design Cafe last year, Reliance acquired Urban Ladder in 2020, and the list is far from over.

Against this backdrop, Wakefit’s growth over the years deserves some attention, especially when it is mulling a public listing.

So, what has it done differently to sustain growth despite challenges? And, what does the industry think about its IPO plans?

Experts believe that Wakefit stands out on the back of its mattress business and not the wooden furniture business, which is prone to major headwinds. Besides, the company should also be recognised for investing in research and development (R&D).

Wakefit’s DRHP highlights a Redseer research touting Wakefit as the only player among its home and furnishings peers, including LifeStyle, Godrej, D’Decor, Sheela Foam, Duroflex, IKEA and Royaloak, to have complete control over the entire value chain from R&D to prototyping and manufacturing.

Besides, its yearly earnings reports suggest that the startup has remained mindful of its operational costs. Further, having an end-to-end supply chain control is expected to have helped the startup manufacture products at a competitive price while keeping its procurement costs low.

For now, to understand Wakefit’s next chapter, it’s........

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