Home solutions provider Wakefit Innovations to receive $45 M from Investcorp

Two persons with knowledge of the possible agreement stated that Wakefit Innovations Pvt. Ltd., a manufacturer of mattresses and a provider of home solutions, will get close to $45 million in equity finance from Bahrain’s Investcorp.

Bengaluru-based sources said that Wakefit would also attempt to acquire lesser businesses and that it will utilise the cash mostly for expansion and the purchase of employee stock options.

Wakefit and Investcorp both declined to respond. In September, VCCircle announced that Investcorp had emerged as one of the front-runners among a group of national and international funds to invest in Wakefit.

Ankit Garg and Chaitanya Ramalingegowda launched Wakefit. Amazon, Flipkart, and Pepperfry are the primary e-commerce platforms used by the firm to sell its items online. Wakefit too closed its doors, starting with 10 sites in cities including Delhi, Bengaluru, and Lucknow.

Offering clients an omnichannel experience is the goal of the company’s expansion into brick-and-mortar locations. 15-20% of the company’s revenue is anticipated to come from brick-and-mortar stores, 50-60% through its own website, and 15-20% from other sales channels.

The co-founders of Wakefit said in an interview in May that the company’s sales increased by more than 50% to $636 million in FY22 and is projected to reach $1 billion this fiscal year. It anticipates breaking even in FY24.

A merger between Wakefit and HomeLane, a venture capital-backed business that shares Sequoia Capital as an investor, is being discussed, according to a report from VCCircle earlier this year.

In November of last year, Wakefit secured 200 crores in Series C investment.