Furnitune to cross Rs 750 m top line in FY 22
Mumbai, Nov 19 For the first time in India, Mumbai-based retail-as-a-service décor company, Furnitune has introduced an end-to-end design mood board or schematic design service for customers at their doorstep. Targeted towards middle and mass premium segments, the company is eyeing revenue of Rs.750 million this fiscal, rising above its own projected target for next year, thanks to the better-than-expected economic revival and the subsequent upbeat market demand during the first half of the year.
Furnitune is the D2C subsidiary of Innovation Modular System Private Limited (IMSPL) founded in 2010 that specializes in B2B décor products.
Today, when the industry is starving of modernization, Furnitune's schematic service provides a comprehensive doorstep personalized 3D visual mood board architectural modeling service that offers a degree of realism in layout and furniture design.
"Although the second wave was unendurable in terms of economic loss, optional spending was still on the rise as the economy wasn't shut during the second wave. This helped our topline surpass Rs 340 million during H1FY22, as against Rs. 230 million in FY21, and about Rs. 120 million in H1FY21, which was emaciated by the pandemic. Going by the massive demand, we are certain that we'll be able to touch the Rs. 750 million revenue milestone, this fiscal as our demands, is over and above the pre-pandemic level," said Meraj Ahmed, Founder, and CEO, Furnitune.
On the sales front during H1FY22, Furnitune sold about 50,000 furniture units worth over Rs 340 million, which is more than 60 percent higher than FY2021. On the profitability side, Mr. Ahmed said Furnitune makes around 15-18 percent gross margin year-on-year. While its retail expansion in Mumbai and Thane is underway, the manufacturing capacity addition at its Thane plant is on track. The Thane plant will have over 8,000 functionality-driven products.
Furnitune would be setting up 40 standalone stores in the next three years in Mumbai, Thane, Navi Mumbai, and Pune, besides eight to 10 leading metros across India. The company plans to invest Rs. 1,000 million in next three years, primarily to set up multi-city retail outlets, with each store expected to be admeasuring around 4,000-10,000 square feet.
Ahmed said the projected revenue would include sales accrued from the central, northern, and eastern markets. On Capex, he said the company has plans to invest Rs 900-1000- million to augment its manufacturing capacity and set up about 20 retail showrooms in the next 2-3 years. The on-demand custom furnishing company, which operates under the label of Furnitune has over 60,000 customers.