Growth Story or Red Flag? : Wakefit IPO

Don't buy the Wakefit IPO hype until you hear this. India's largest D2C home furnishings brand which is fully vertically integrated and it is mostly designed to manufacturing, it achieved the milestone of crossing 100 crore revenue across mattresses, furniture and furnishings. Now looking at the core financial reality, the growth is there but it's a loss making company. Despite its strong revenue growth, the company has reported a loss of 35 crores in the financial year end FY 2025 and the IPO fund use. The issue is a small issue. The fresh issue which is 377 crores, will primarily fund aggressively its physical retail expansion. It's planning to open 1170 new stores. Now the major red flag which I observed is there is a sudden leadership change. The CFO and the CMO resigned just before the ipo which is a very critical timing that raises governance concerns during a major corporate event. It faces competition from giant players like Ikea, Sleepwell and all that. So for the investors this IPO is a bet on a capital intensive retail expansion plan in a very very competitive market. The recent executive exits added more uncertainty in this IPO. While the D2C brand strength is clearly evident, the path to profitability remains unclear amidst this planned spending. Now considering this as a high growth high risk proportion, it is only suitable for comfortable with volatility and having a long term horizon and I do not see it is in a particular strong niche like that. Maybe post listing we have to focus on the long term but even on the short term considering the major red flags, you go and study the company. What are your thoughts on this ipo? Are you applying or you have already applied or you are giving a skip for this ipo? Let me know below in the comments.