Indonesia’s Fabelio seeks to raise Series D funding, plans IPO in 2022

Photo: Fabelio

Indonesian online furniture retailer Fabelio is expecting to raise another round of funding before it makes a stock market debut next year, its CEO and co-founder Marshall Utoyo told DealStreetAsia.

While the proposed deal size could not be ascertained, its existing backer MDI Ventures is understood to be in the fray to join what would mark the startup’s Series D round.

Fabelio claims to have maintained its top-line growth of around 20-25% last year from that of 2019. This is even as it’s lower than the pre-COVID days when its top-line growth was 50-75% of the revenue.

The presence of offline stores is still a determining factor for customers to buy furniture in Indonesia, said Utoyo.

“The pandemic forced the company to close all the offline stores early last year. We diverted our offline sales to online sales,” Utoyo said.

According to a document accessed by DealStreetAsia, Fabelio’s losses stood at Rp 73.14 billion ($5.06 million) as of June 2020. Prior to that, it suffered a loss of Rp 88.38 billion ($6.12 million) in 2019, which was a 33.78% increase from its loss of Rp 66,06 billion ($4.57 million) in 2018.

Its total assets, meanwhile, have been aligned with its total liabilities. While the former stood at Rp 115,12 billion ($7.98 million) as of June’20, its total liabilities were Rp 133.29 billion ($9.23 million).

Expand Table

FORTUNE 500 INVESTMENTS (S) PTE. LTD.    
(IDR in millions)
20182019As at
30 June 2020
Total assets123.175232.919115.117
Investment in subsidiaries24.75124.750
Fixed assets-Net1.1983.4733.272
Total liabilities44.933143.063133.294
loss for the year66.06188.38673.135

According to a source privy to the numbers, the rising debt was a result of the expansion that the company undertook to open new stores across the archipelago.

Utoyo, however, brushed off concerns regarding mounting debt.

“It is true that our debt was high, but we still maintain our debt-to-equity ratio at a healthy level,” Utoyo said, even as he declined to divulge the amount of debt the company amassed over the years. According to the document that we have seen, the company’s total liabilities jumped 218.4% from Rp 44.93 billion ($3.11 million) in 2018 to Rp 143.06 billion ($9.91 million) in 2019.

To maintain the company’s margin going forward, Fabelio has decided against randomly ramping up the number of offline stores.

“We are planning to open some offline stores in new areas and current areas, but not too aggressively. We try to be more efficient by converting the online traffic to online sales,” Utoyo said.

Currently, Fabelio is carving out its expansion plans rather cautiously as it plans to launch an IPO in the Indonesia Stock Exchange in 2022.

In June 2020, Fabelio raised $9 million as part of the ongoing Series C round, led by Taiwanese venture firm AppWorks, Telkom Group-backed MDI Ventures, and Endeavour Catalyst.

The round had also seen the participation of its long-term backer Aavishkaar Capital.

In total, the startup has raised $20 million since its inception in 2015.

Besides competing with traditional brands such as Ace Hardware (Kawan Lama Group) and IKEA, Fabelio also counts Dekoruma, Rupa Rupa (Kawan Lama Group), Mendekor, and Andoleto among its competitors.

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).   

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  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.