😴 Wakefit Files for IPO... But Auditors Aren’t Sleeping

Good morning, weekend warriors! 🛌🫖

It’s Sunday, June 29—and while you're debating between chai and cold brew, we've got both the caffeine and the content to kickstart your lazy day. From Virat Kohli’s startup innings to Zee’s fundraise drama and NATO’s Cold War throwback, this edition is hotter than your neighbor’s pressure cooker at 1 p.m.

So grab that blanket, ignore those 47 unread family WhatsApp messages, and let’s get into your favourite brew of business, markets, and masala—served extra garam and full of tadka 😎

🫖 Chai Shots

• 🏏 Virat Bats for Agilitas: Cricketing icon Virat Kohli has invested ₹40 crore in Agilitas, the sportswear company launched by former Puma India head Abhishek Ganguly. The move marks his exit from a ₹300-crore Puma deal to join Agilitas not just as an investor, but as a strategic force. Kohli’s investment is part of a larger round, and he’ll also be involved in brand building through his label One8. Want the full behind-the-scenes on why Kohli walked away from the cheque to build India’s own Nike? Don’t miss our deep-dive case study here 👉 🏏 Virat Kohli’s ₹300‐Crore Cover‐Drive Into Agilitas

• 🛍️ India’s Consumption Hits Two-Decade High: Private consumption rose to 61.4% of India’s GDP in FY25—the highest in 20 years—driven by a strong rebound in rural demand and steady consumer sentiment. Private final consumption expenditure also clocked 7.2% growth, outpacing last year’s 5.6%. Meanwhile, investments grew at 7.1%, and net exports surged thanks to rising exports (+6.3%) and falling imports (–3.7%).

• 📦 Panasonic’s India Exit (Partially): Panasonic has pulled out of the refrigerator and washing machine market in India after six straight years of losses and minimal market share. It will now focus on HVAC, B2B tech, and home automation, while continuing to support dealers and existing customers.

• 🛏️ Wakefit’s IPO Wake-up Call: Home and sleep solutions brand Wakefit filed its draft IPO papers with SEBI after clocking ₹971 crore revenue in the first nine months of FY25. But auditors flagged serious issues including statutory payment delays and lack of audit trails in its accounting systems. More in the Big Brew 👇

📈 Market Masala

• 📦 Cement Keeps Climbing: Cement dispatches rose 9% YoY in May to 39.6 million MT, with prices up 8% to ₹360 per 50kg bag. ICRA expects FY26 output to hit 480–485 million MT, driven by housing and infra demand. Margins are also expected to improve on the back of stable coal and diesel prices.

• 🛩️ DroneAcharya Fined: DroneAcharya, a listed dronetech startup, was fined ₹1.3 lakh by BSE for delay in submitting financials for H2 FY25. The penalty was imposed under SEBI regulations, highlighting compliance as a growing concern for new-age listed firms.

• 🇺🇸 US Softens Remittance Blow for NRIs: In a win for the Indian diaspora, the US Senate revised its "One Big Beautiful Bill Act" to lower the remittance tax from 3.5% to just 1%. The tax now excludes debit/credit transfers and applies post-Dec 2025. With Indians sending over $32 billion home annually, this is a big relief.

• 🧵 India Tightens Jute Imports from Bangladesh: The Indian government has restricted jute and fibre imports from Bangladesh to only the Nhava Sheva port, citing unfair trade practices and the need to protect domestic producers and rural jobs. The move, announced by the DGFT, is seen as a response to concerns over Bangladeshi subsidies and mounting pressure on Indian jute manufacturers.

• 🗳️ Zee Shareholder Vote Incoming: Zee’s ₹2,237 crore fundraise plan via convertible warrants will be voted on July 6–9. Proxy firms are urging shareholders to vote against due to dilution risks and governance issues.

🌍 Global Masala

• 👟 Nike to Hike Prices as Tariffs Pinch: Nike will raise product prices in the US as Trump’s China tariffs are expected to add $1 billion to its costs. To dodge the squeeze, Nike plans to slash its China sourcing from 16% to under 10% by May 2026. Despite a 12% revenue drop in Q4, shares jumped 15% thanks to better-than-expected forecasts and strong growth in the running category. Analysts say other brands like Adidas and Target will follow suit as tariff pressure mounts.

• 🇪🇺 Europe Buys Peace… in Dollars: NATO’s new 5% GDP defense target is driving European nations to buy more American weapons—solving a key US trade grievance. EU Council President Antonio Costa said this will pave the way for a US-EU trade deal before Trump’s July 9 tariff deadline.

☕ The Big Brew 😴 Wakefit’s IPO Looks Fluffy, But the Audit Trail Isn’t

Wakefit, the sleep and home solutions brand, is eyeing public markets with a ₹971 crore revenue in just the first nine months of FY25—almost matching its full FY24 topline. Impressive? Absolutely. But auditors are losing sleep over more than just revenue numbers.

🔍 Let’s break it down:

• 📉 Wakefit posted a ₹9 crore net loss in 9M FY25, but reported ₹76 crore in EBITDA and a 7.65% EBITDA margin.

• 🏗️ Revenue was largely from manufactured goods (97%), showing strength in in-house products, not just trading.

• 📦 Materials cost ate up ₹433 crore of expenses, while ads and delivery cost ₹82 crore and ₹75 crore respectively.

• 🧾 But here’s the rub: auditors flagged mismatches between internal records and bank statements, late GST payments, missing internal audits, and software lacking required audit trails.

• 📊 The DRHP admits Wakefit uses non-GAAP metrics like adjusted EBITDA and ROCE, but warns investors these may not match industry standards.

While the numbers are promising, the red flags are real. Wakefit’s IPO success may depend on how well it addresses transparency concerns before the final bell.

What does this mean?

For retail investors, Wakefit looks like a fast-growing consumer brand with strong margins. But the audit concerns could raise reputational risks, especially in a market that’s already wary of startup IPOs. Proceed with optimism, but don’t forget your due diligence.

🚀 Startup Scoop

• 🥚 Eggoz Cracks a Deal: Egg-centric D2C brand Eggoz is set to raise ₹125 crore in a round led by Gaja Capital (₹100 Cr), with IvyCap Ventures and Rebright Partners joining in. The startup, which also ventured into ready-to-cook foods last year, will use the funds to expand sourcing and supply chain.

• 💄 Zilo’s Fashion Fast Track: Fashion delivery startup Zilo plans to expand beyond Mumbai with its new $4.5M war chest. Their catalogue will stretch to 250 brands and over 1 lakh styles just in time for the festive season.

🧠 Chai Break Trivia

☕ Did you know the first email ever sent was just the letters "QWERTYUIOP"? 💻📨

Back in 1971, Ray Tomlinson picked a random string of keys from the top row of the keyboard to test his new invention—email. Little did he know he was mashing out history. No subject line. No “sent from my iPhone.” Just QWERTY and vibes.

🔮 What’s Brewing Next

• 💸 Meesho Eyes ₹4,250 Cr IPO: After Prosus-backed Meesho filed its papers, D-Street is watching closely for India’s next major tech IPO.

That’s a wrap on your Sunday edition of Masala Chai! Whether you're binge-watching cricket reruns or power-napping through the heat, we hope today’s brew helped you sip the world, one headline at a time.

Catch you Monday with more chai, more spice, and zero filler.

☀️ Stay hydrated. Stay informed. Stay desi.