Premium Home Furnishing Startup Furnishka Raises ₹27 Crore in Pre-Series A

2024-10-03 12:15:39 Business

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Bengaluru, 3 October 2024: Furnishka, a Bengaluru-based leading furniture retailer, today announced that it has raised ₹27 crores in a Pre-Series A funding led by IndiaQuotient bringing their total to ₹45 crores, which includes the ₹18 crores raised last year led by BEENEXT. The recent round also saw participation from Sparrow Capital and angel investors including Sujeet Kumar, Co-founder at Udaan, and Ramakant Sharma Co-founder at Livspace.

The funding will be utilized to advance product design and development, strengthen manufacturing and supply chain capabilities, and expand to new locations. Furnishka will also leverage the funding to expand its product categories focussed on premium living room, dining room & bedroom collections, open six large-format stores, and create educational content to guide customers in making informed decisions about their home furnishing journey.

Furnishka was founded in 2023 by Ganesh Pawar, an IIM Ahmedabad alumnus and former co-founder of Spinny (a prominent Indian online marketplace for used cars). The company aims to address the complexities in India's home furnishing market. Having observed challenges such as extended delivery times, high costs, and inconsistent service quality, Ganesh and his team developed Furnishka to offer customers a seamless shopping experience. The company operates both online and offline stores in Bengaluru, providing over 1,000 SKUs and customizable designs at competitive prices, helping customers personalize their spaces effortlessly.

Commenting on the brand's unique offerings, Ganesh Pawar, Founder of Furnishka, says, "Supply chain optimization is the need of the hour to keep pace with the evolving customer demand. Our effective supply chain management of standardizing components and localization of production have helped significantly reduce operational costs without compromising on quality while meeting the promised delivery time. This enables us to offer entry-level products at 20% below market average and premium offerings at 30-40% less than competitors. As a result, we've achieved high customer satisfaction, leading to repeat purchases and referrals through word-of-mouth."

Commenting on the fundraise, Anirudh Garg, Partner at BEENEXT says, "Driven by increased disposable income, consumer shopping habits are evolving with increased spending on durable, high-quality furniture. Furnishka is perfectly placed to meet the growing market demand and is well-positioned to transform this ecosystem through its D2C model. There is no one better than Ganesh with his expertise in supply chain to redefine the home furnishing industry that is on the brink of evolution."

"We're witnessing a growing trend among urban consumers who are increasingly prioritizing the aesthetics and interiors of their homes, with furniture playing a central role. There's a significant gap in the market for organized, trusted players offering high-quality furniture at affordable prices in a large-format retail. We were impressed by the overwhelmingly positive customer feedback and the Furnishka team's exceptional dedication to customer satisfaction. Ganesh's vast experience in logistics and supply chain, combined with the marketing and customer-centric focus of the founding team, creates the ideal synergy to build a large-scale, omnichannel furniture retail chain." states Anand Lunia, Partner at IndiaQuotient.

As per a research report by Research and Markets, the India Furniture Market will reach USD 64.39 Billion by 2032, up from USD 24.47 Billion in 2023, with a CAGR of 11.35% between 2024 and 2032, offering immense potential for innovative players. Furnishka is positioned to harness this growth through its omnichannel presence and customer-centric approach.

About Furnishka

Furnishka was founded in November 2023 with the core objective of providing customers with long-lasting furnishing products at great value. Since opening its first store in Bangalore, the company has been constantly innovating in supply chain management, standardization of components, localization, and operational cost reduction to offer premium furniture at affordable prices. Furnishka brings together the best designs in home furnishing from across India to suit the requirements of Indian households. The company's constant pursuit of sourcing high-quality materials from different parts of the country, while continuously optimizing costs, has helped Furnishka serve over 10,000 customers in under a year. Furnishka currently operates 4 large-format stores in Bangalore, where it curates and displays over 1,000 products under one roof. The company also provides thousands of customization options for every taste and size requirement. As of FY 2023-24, Furnishka serves customers exclusively in Bangalore.

About BEENEXT:

BEENEXT is a Venture Capital fund managed by serial entrepreneurs that focuses on assisting founders with their operational experience, network, trust, unique perspectives, and capital. The team invests in early-stage tech start-ups that are focused on building new digital platforms driven by the data network. BEENEXT is a platform of founders, by the founders, and for the founders across the globe, primarily in Southeast Asia, India, and Japan. Since its establishment in 2015, the team has invested in over 200 companies globally.