Spacewood eyes Rs 300 cr funding to accelerate growth

 

City-based modular furniture maker Spacewood Furnishings is reportedly in the final stages of securing Rs 300 crore in funding from a Mumbai-based investment firm - A91 Partners. The deal is expected to value the company at around Rs 1,200 crore. As per the sources, part of the funding will go directly into the company, while another portion will involve existing shareholders selling their stakes to new investors. Sources said that the funds will also be used to strengthen brand visibility, upgrade manufacturing capabilities, enhance the product portfolio, and attract skilled talent. Founded in 1996 by Kirit Joshi and Vivek Deshpande, Spacewood has built a strong presence in India’s growing modular furniture market.

 

The company operates about 35 exclusive retail stores in over 20 cities and sells through a network of more than 500 dealers across 150 cities. the company is exporting furniture to Dubai and some African countries. The new round of funding will help the company expand its retail presence to 100 exclusive stores nationwide. Spacewood’s state-of-the-art manufacturing facility in Nagpur spans over one million square feet, making it one of the largest in the country. Apart from its own brand, the company manufactures furniture for leading retailers. Spacewood is also leading brand for office solutions in name of ‘SOS’ offering products such as work stations, chairs, storages to leading corporate houses in India It is important to note that the company was hit hard by the COVID-19 pandemic. After two consecutive loss-making years - Rs 49 crore in FY21 and Rs 10 crore in FY22 - Spacewood bounced back into profitability.

 

The company reported a net profit of Rs 53 crore in FY24, with revenues of around Rs 600 crore. For FY25, the company has projected revenues of Rs 700 crore and expects to maintain steady growth. Industry sources suggest that Spacewood aims for 25 - 30 per cent growth annually over the next five years, primarily by expanding its exclusive stores and dealer network. The brand’s focus remains on delivering modern, modular, and customizable furniture solutions for homes and offices, a segment that continues to grow as urban consumers seek flexible and space-efficient designs. Sources further said that the upcoming investment will help Spacewood accelerate growth through brand building, strengthening manufacturing, and expanding its design and retail ecosystem.