Bengaluru-based furniture retailer Furnishka has raised Rs 27 crore in a pre-series A funding round led by India Quotient, bringing the total raised by the company to Rs 45 crore.
The round also saw participation from Sparrow Capital and angel investors including Udaan cofounder Sujeet Kumar and Livspace cofounder Ramakant Sharma.
The new funds will be used to advance product design and development, strengthen manufacturing and supply chain capabilities, and expand to new geographies.
The company will also expand its product categories focused on premium living room, dining room and bedroom collections, open six large-format stores, and create educational content to guide customers.
Founded in 2023 by Ganesh Pawar, the cofounder of used car marketplace Spinny, Furnishka aims to address the complexities associated with India’s home furnishing market such as extended delivery times, high costs and inconsistent service quality. The company operates both online and offline stores in Bengaluru, providing over 1,000 stock keeping units (SKUs).
The company said it serves over 10,000 customers and currently operates four large-format stores in Bengaluru.
“Supply chain optimisation is the need of the hour to keep pace with the evolving customer demand. Our effective supply chain management of standardising components and localisation of production have helped significantly reduce operational costs without compromising on quality while meeting the promised delivery time,” said Pawar. “This enables us to offer entry-level products at 20% below market average and premium offerings at 30-40% less than competitors.”
As per a report by market research platform Research and Markets, India’s furniture market will reach $64.39 billion by 2032, up from $24.47 billion in 2023, with a compound annual growth rate (CAGR) of 11.35% between 2024 and 2032.
On July 8, ET reported that Pepperfry, one of the largest players in the furniture retailer space, has recently postponed its initial public offering plans as it looks to prioritise focusing on growth and profitability.
Other major players in the space include Reliance-owned Urban Ladder and ecommerce giants Amazon India and Flipkart.
“We’re witnessing a growing trend among urban consumers who are increasingly prioritising the aesthetics and interiors of their homes, with furniture playing a central role. There’s a significant gap in the market for organised, trusted players offering high-quality furniture at affordable prices in a large-format retail,” said Anand Lunia, partner at IndiaQuotient.
Source Homevior.in
