Indonesian online furniture retailer Fabelio has raised $9 million as part of its ongoing Series C round led by Taiwanese venture firm AppWorks, Telkom Group-backed MDI Ventures and Endeavour Catalyst.
Existing investor Aavishkaar Capital also contributed to the round. With this, the startup has raised a total of $20 million to date. The startup raised a $6.5 million Series B round led by Aavishkaar Frontier Fund last year.
The company is planning to raise another $5 million in the second tranche of its Series C round by the year-end, Fabelio founder Christian Sutardi told DealStreetAsia.
Following the investment, AppWorks partner Jessica Liu will be joining Fabelio’s board of directors.
Silk Bridge Partners advised on the Series C1 round.
The company will use the proceeds to accelerate its presence within Indonesia and Southeast Asia as well as strengthen its technological and supply chain capabilities.
Fabelio, which claims to be on track to achieve profitability by 2022, said, its primary focus for 2020 will be to increase market share, hire key engineering talent, spruce up online marketing efforts, product development and operational improvements.
Fabelio CEO and co-founder Marshall Tegar Utoyo said, “Our main focus will be to improve our product categories and improve delivery times. On top of that, we will expand our sphere of influence across Indonesia by opening new warehouses and experience centres in new cities.”
These steps, he added, will enable the startup to grab a larger market share in the $6.7 billion home furniture market in Indonesia.
Fabelio plans to expand its network of logistics and experience centres in cities such as Java and Bali by November 2020. It also plans to add more categories such as home and living to its furniture-dominated portfolio in the medium term.
Since its launch in 2015, Fabelio has set up three offices and 20 showrooms in Indonesia. It claims to have seen 82 per cent year-on-year growth in customer acquisitions, with more than 1,000 B2B projects ranging from residential properties, offices to retail brands such as Citraland, BRI and Jakarta MRT, according to the company.
The company has seen an increasing trend towards online retail in the furniture category, a trend that has further accelerated in the aftermath of the COVID-19 pandemic.
“In April, we recorded our highest online sales ever. The future of e-commerce is brighter than ever, and the simultaneous ramp-up in payments and infrastructure will support this development,” Sutardi added.
MDI Ventures investments head Winston Adi said, “As businesses are turning digital, it is very important to blur the lines between physical and digital, maintain efficiency with data, and tackle the relevant market with a highly scalable business model to gain the market lead.”