Bengaluru-based home furnishings startup Furnishka has raised Rs 27 crore in a pre-Series A funds round, bringing its total funding to Rs 45 crore.
India Quotient led this round, with participation from Sparrow Capital and well-known angel investors such as Sujeet Kumar (co-founder of Udaan) and Ramakant Sharma (co-founder of Livspace).
Purpose of financing
Furnishka plans to use the raised capital to expand its product range and improve its operations. The startup will focus on product design and development, strengthen its manufacturing capabilities, and improve the efficiency of its supply chain.
In addition, it will expand its physical presence with the opening of six more large-format stores.
Addressing the challenges of the Indian home furnishings market
Furnishka was founded in 2023 by Ganesh Pawar, an IIM Ahmedabad alumnus and former co-founder of Spinny.
Pawar and his team identified several pain points in the Indian home furnishings market, such as long delivery times, high costs and inconsistent service quality.
To address these issues, Furnishka offers a seamless shopping experience both online and offline. The startup currently operates four large-format stores in Bengaluru and offers over 1,000 SKUs, including customizable designs, helping customers personalize their homes at competitive prices.
“Our effective supply chain management through standardization of components and localization of production has helped significantly reduce operational costs without compromising on quality while meeting promised delivery time,” Pawar said.
He also said that this approach allows the company to offer entry-level products 20% below the market average and premium offerings 30% to 40% less than competitors.
Growth plans and market potential.
Furnishka plans to capitalize on the growing demand for high-quality and durable furniture in India.
According to a report by Research and Markets, the Indian furniture market is expected to grow from $24.47 billion in 2023 to $64.39 billion in 2032, at a compound annual growth rate (CAGR) of 11.35%.
Commenting on the potential of the brand, Anirudh Garg, Partner, BEENEXT, said, “Furnishka is perfectly positioned 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 supply chain expertise to redefine the home furnishings industry which is on the brink of evolution.”
Future plans and customer-centric approach
In addition to expanding its physical presence, Furnishka aims to expand its product categories, focusing on premium collections for living rooms, dining rooms and bedrooms. The startup also plans to create educational content to guide customers in making informed decisions about their home furnishing options.
By offering thousands of customization options while maintaining affordability, Furnishka aims to meet diverse customer needs.
Anand Lunia, Partner, IndiaQuotient, said: “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 marketing and the customer-centric approach of the foundation team, creates the ideal synergy to build a large-scale omnichannel furniture retail chain.”
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