Bangalore-based online modular kitchen and home furnishing solutions provider CapriCoast Home Solutions Pvt Ltd is in talks with venture capital firms to raise Series A round of funding, company’s top executive told DEALSTREETASIA.
Existing investor Accel Partners will also be participating in this round.
“The funding will be used to bring many more modular furniture brands on board and invest further in our technology platform. We will also use the money for our expansion plans,” said Jawad Ayaz, founder and CEO, CapriCoast.com.
Though he did not disclose further details on the investors and deal value, but said, the firm was in talks with well-known venture capital funds to raise between $5 million and $10 million.
Given the size of the market, the uniqueness of our model and demonstrated success so far, we are confident of a commensurate valuation and hence limited dilution, he added.
Ayaz along with Vinod Chandran co-founded furniture e-tailer Zansaar which is also backed by Accel Partners.
CapriCoast.com had raised $1.25 million in seed funding from Accel Partners India in March this year. The company is yet to deploy the entire funding.
An email query sent to Accel Partners’ spokesperson to know more about the new deal did not elicit any response till the time of filing this article.
Founded in January 2015 by Jawad Ayaz, CapriCoast claims to be the only marketplace in India for buying solutions. The company provides modular furnishing and home furnishing solutions online and has over 1,000 deliverable designs.
The startup launched this platform in partnership with Spacewood and Style Spa and expects to have all the major brands signed up in near future.
It is an online-to-offline (O2O) model, providing the solutions in an online-led manner where customers can customise online through an extensive design catalog, customising their design with free consultations, and then buy online or they can also experience their design offline at the branded showrooms and buy from there.
The company is engaged with the customers from the research, discovery, home consultations and showroom visits, to on-site installation and after-sales support. It doesn’t focus much on the renovation market due to the site and civil work complexities involved, Ayaz said.
A commission-based model, CapriCoast is yet to be profitable. It claims to have provided its services to over 100 projects since its launch.
Though making healthy gross margins from every project, the startup needs another 24 months to hit profit road.
“After the launch of its O2O model, the company’s growth has been greater than 50 per cent month on month and aims to hit a run rate of $1 million per month by early 2016,” Ayaz said.
CapriCoast which started operations from one city early this year expanded its operations to 10 cities in a month from its launch. Currently, it provides its services in 17 cities and is now looking to expand to 65 and have a showroom network of over 200 by mid of next year.
It is also planning to bring more modular kitchen brands in its portfolio.
The startup has a team of around 50 people besides founder and two senior people.
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