FabFurnish to raise $50 million to fund expansion

Leading online furniture firm, FabFurnish is all set to raise over USD 50 million from existing investors within the next one year, in a bid to fund its expansion plans, says a PTI report.
FabFurnish to raise over $50 million to fund expansion

Leading online furniture firm, FabFurnish is all set to raise over USD 50 million from existing investors within the next one year, in a bid to fund its expansion plans, says a PTI report.

The funds will be invested in warehouse, expansions of physical stores, logistics and marketing activities.

Expressing his views on the matter, FabFurnish CEO and Co-founder Vikram Chopra told PTI: "Within the next six months to one year we are eyeing to raise fresh funds of more than USD 50 million from our existing investors, including Rocket Internet and Kinnevik."

Besides, the Gurgaon-based company has already raised more than USD 30 million from these investors.

He added: "We will be investing the money raised heavily into developing warehouses, expansion of physical stores, logistics and marketing activities."

FabFurnish has four stores in the country - two in Bangalore and one each in Gurgaon and Faridabad.

Chopra said the company has aggressive plans to expand the number of stores to push its private labels as part of its brand building exercise.

"Furniture is a segment which does not have a brand as such in our country. Whatever we sell is our own private label, so there is a tremendous opportunity in building these owned brands and for these we need to have multiple touch points with our consumers," he said.

He added: "We are focussing on building stores not because we want to increase our sales but as part of building our brand image. We want to take our brands to a large number of people through this."

Currently, 95 per cent of the company's sales is generated online while the rest comes from its brick and mortar stores.

"We have grown by three to four times in the last year and are expecting to become India's largest furniture retailer in both online and offline within the next few months," he added.

The Sweden-based Investment AB Kinnevik and Berlin-based Rocket Internet AG have separately invested in a host of startups and e-commerce firms in the country, including Jabong, Quikr, Foodpanda and Tripda. Besides, Kinnevik also holds 14.2 per cent stake in the Berlin-based firm.

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