Omnichannel mattress and furniture retailer Wakefit.co has transitioned to a public company in preparation for a potential IPO.

The Bengaluru-based firm has changed its legal name to “Wakefit Innovations Limited,” dropping the “Private” designation, according to filings with the Registrar of Companies.

The company aims to list its equity shares on stock exchanges to provide a formal trading platform for shareholders.

Wakefit.co has also returned to EBITDA profitability, reporting a 24% revenue increase to 1,017 crore rupee (US$118.7 million) for FY24, along with 65 crore rupee (US$7.6 million) in EBITDA.

It projects double-digit growth for FY25.

🔗 Source: YourStory

🧠 Food for thought

1️⃣ Furniture IPOs follow profitability-first pattern

Wakefit’s IPO preparation after achieving EBITDA profitability reflects a common trend in furniture retail public offerings, where profitability often precedes market entry.

This contrasts with tech startups that frequently go public while still loss-making, as furniture retailers typically need to demonstrate financial stability to attract investors.

When Lovesac went public in 2018, it had already established profitability metrics that helped it raise $56 million in its IPO, with shares opening at $25 (56% above the $16 offering price)1.

The furniture sector’s physical product nature, with high logistics costs and inventory management challenges, makes positive unit economics crucial before approaching public markets.

Wakefit’s Rs 65 crore EBITDA achievement signals to potential investors that the company has found sustainable operational efficiency, addressing the key concern that typically affects furniture e-commerce players.

2️⃣ Omnichannel strategy essential for furniture retail success

Wakefit’s self-description as an “omnichannel” retailer reflects an important industry insight: successful furniture companies increasingly require both online presence and physical showrooms.

Lovesac’s pre-IPO business model transformation included expanding to 70 showrooms primarily in malls, demonstrating the importance of giving customers opportunities to experience products physically despite being known for direct-to-consumer sales1.