(L-R) Vivek Deshpande and Kirit Joshi, founders, Spacewood Furnishings
Nagpur-based modular furniture maker Spacewood Furnishers has announced a Rs 300-crore funding from private equity firm A91 Partners. ET had first reported on October 27 about the development. The transaction values Spacewood at Rs 1,200 crore.
Following the investment, A91 Partners has picked up significant minority stake in the firm. The capital will be used for expansion, brand-building, and strengthening operations, the company said in a statement.
In the ongoing fiscal year, the company said it expects to clock revenues of approximately Rs 700 crore. “With A91 Partners’ backing, Spacewood aims to accelerate its revenue trajectory, targeting 25-30% annual growth over the next five years with a focus on profitability. The funding will support technology upgrades, process automation, and talent acquisition to strengthen its operations and retail presence,” cofounder and director Kirit Joshi said, adding that a bulk of the new capital will be deployed in improving the company’s manufacturing capabilities.
The company has a 1 million square feet factory in Nagpur.
Spacewood also has over 35 exclusive outlets across more than 20 cities and a dealer network of 500 partners in 150 towns and cities, the company said. It plans to expand to 100 stores nationwide in the next few years, further strengthening its omnichannel presence along with platforms such as Amazon and Pepperfry.
Speaking to ET, A91 Partners’ general partner Abhay Pandey said the private equity firm has backed Spacewood for three reasons. “We like the market; the founders have built a sensible business with limited capital; and we believe that with the right capital, talent, and processes, the company can scale much faster to capture the opportunity.
“A lot of research has gone into understanding where Indian consumers would spend any incremental income, and the top two categories that consistently emerge are travel, and home or office improvement. This gives us confidence that the market will continue to grow for a long time. It’s also a highly unorganised market that is steadily formalising, and companies like Spacewood have shown that there are strong profit pools in the sector,” Pandey explained.
Founded in 1996, Spacewood clocked Rs 600 crore in revenue in FY25 with an Ebitda of Rs 70 crore.
Also Read: SaaS firm MoEngage raises $100 million from A91 Partners, Goldman Sachs Alternatives; valued at $700 million
Following the investment, A91 Partners has picked up significant minority stake in the firm. The capital will be used for expansion, brand-building, and strengthening operations, the company said in a statement.
In the ongoing fiscal year, the company said it expects to clock revenues of approximately Rs 700 crore. “With A91 Partners’ backing, Spacewood aims to accelerate its revenue trajectory, targeting 25-30% annual growth over the next five years with a focus on profitability. The funding will support technology upgrades, process automation, and talent acquisition to strengthen its operations and retail presence,” cofounder and director Kirit Joshi said, adding that a bulk of the new capital will be deployed in improving the company’s manufacturing capabilities.
The company has a 1 million square feet factory in Nagpur.
Spacewood also has over 35 exclusive outlets across more than 20 cities and a dealer network of 500 partners in 150 towns and cities, the company said. It plans to expand to 100 stores nationwide in the next few years, further strengthening its omnichannel presence along with platforms such as Amazon and Pepperfry.
Speaking to ET, A91 Partners’ general partner Abhay Pandey said the private equity firm has backed Spacewood for three reasons. “We like the market; the founders have built a sensible business with limited capital; and we believe that with the right capital, talent, and processes, the company can scale much faster to capture the opportunity.
“A lot of research has gone into understanding where Indian consumers would spend any incremental income, and the top two categories that consistently emerge are travel, and home or office improvement. This gives us confidence that the market will continue to grow for a long time. It’s also a highly unorganised market that is steadily formalising, and companies like Spacewood have shown that there are strong profit pools in the sector,” Pandey explained.
Founded in 1996, Spacewood clocked Rs 600 crore in revenue in FY25 with an Ebitda of Rs 70 crore.
Also Read: SaaS firm MoEngage raises $100 million from A91 Partners, Goldman Sachs Alternatives; valued at $700 million
