Home furnishing startup Furnishka raises Rs 27 crore funding, in talks to raise another $20 million

Bengaluru-based home furnishing startup Furnishka has raised Rs 27 crore in a pre-Series A funding 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 the Funding

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 enhance its supply chain efficiency.

Additionally, it will extend its physical presence by opening six more large-format stores.

Tackling India's home furnishing market challenges

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 India’s home furnishing 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 of standardizing components and localization of production have helped significantly reduce operational costs without compromising on quality while meeting the promised delivery time," Pawar said.

He also said that this approach allows the company to offer entry-level products at 20% below the market average and premium offerings at 30-40% less than competitors.

Plans for growth and market potential

Furnishka plans to capitalize on the increasing demand for high-quality, 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 by 2032, with a compound annual growth rate (CAGR) of 11.35%. 

Commenting on the brand's potential, Anirudh Garg, Partner at BEENEXT, said, “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.”

Future plans and customer-centric approach

In addition to expanding its physical presence, Furnishka intends to broaden its product categories, focusing on premium living room, dining room, and bedroom collections. The startup also plans to create educational content to guide customers in making informed decisions about their home furnishing choices.

By providing thousands of customization options and maintaining affordability, Furnishka aims to serve diverse customer needs.

Anand Lunia, Partner at 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 the marketing and customer-centric focus of the founding team, creates the ideal synergy to build a large-scale, omnichannel furniture retail chain."