Omnichannel furniture company Wooden Street is reportedly in talks with Premji Investors to raise around Rs 200 crore (about $25 million). As per a Moneycontrol report, the talks are in advanced stages.
The report goes on add that that the series C round reportedly values the company at Rs 1,500-1,600 crore or $180-200 million. Wooden Street, selling home decor items and other customised furniture, has over 100 stores across India. It is launching around 10 more each month as it doubles down on its omnichannel strategy. Overall, the company has over 350 delivery points and plans to further increase those touchpoints.
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In April, the company announced its investment of Rs 50-70 crore to build its manufacturing facility in Jodhpur, Rajasthan. The 10-lakh plant square feet plant helped push up its production capacity 4-5 lakhs per annum. With the latest fundraise, the company reportedly hopes to enhance its total output, with the majority going towards business expansion.
It is reported that in FY23, Wooden Street generated a revenue of Rs 194 crore and a profit of Rs 1 crore.
Despite topline jumping to 48 percent on a year-on-year basis, its profit reduced slightly from Rs 1.2 crore recorded in FY22. Wooden Street, which competes with Swedish giant IKEA, Peak XV-backed Wakefit, Furlenco, Pepperfry, Urban Ladder and other furniture makers, raised $30 million in a round led by WestBridge Capital in 2022.
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All these companies, akin to several other consumer companies, are driving their attention towards their omnichannel strategy by increasing their brick-and-mortar stores.
As per a recent report by Redseer, Accel and Fireside, an omnichannel shopper spends 2.5x more than a single-channel shopper. Increasing number of brands are also focusing on a mix of online and physical channels to cater to high customer demands.
The report also stated that digital will immensely contribute to a significant amount of purchases that offline, there is an emphasis for an omnichannel approach
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