Spacewood Furnishers, a brand and a renowned manufacturer of modular furniture, has been able to raise a substantial amount of capital of ₹300 crore from A91 Partners. This is a significant investment which is spearheaded by the marquee private equity firm, which values Spacewood at ₹1,200 crore and will be a crucial step towards the company’s expansion and operational strengthening.

Utilisation of funds and manufacturing facility

Spacewood Furnishers is a funding round in which A91 Partners contributed ₹300 crore. In this investment, the shareholding of Spacewood by the private equity firm is 25%. minority. The post-investment valuation of the modular furniture manufacturer is ₹1,200 crore. The collaboration with such a company as A91 Partners will become priceless to Spacewood in its new stage of development, utilizing the experience of the firm in building consumer brands, which was mentioned by Kirit Joshi, Co-founder and Director of Spacewood. The huge amount raised by A91 Partners has been tactfully invested in the upgrading of the operations of Spacewood and strengthening its retail presence in the country.

Spacewood Furnishers was initially established in 1996 by Vivek Deshpande and Kirit Joshi. The company had first developed itself as a high-end brand and producer of modular furniture. It has a wide range of products, including modular kitchens, wardrobes, home furniture, and pre-hung doors. In 2011, the company was further diversified as Nitin Sudame became the founder of Spacewood Office Solutions (SOS), and it was under his leadership that the company successfully ventured into the office furnishing business.

The manufacturer has a spectacular and combined furniture production plant that covers more than 1 million sq. ft. It has a large-scale facility, which is equipped with panel and sheet metal processing technologies and hence can produce everything in-house. The products offered by the company are spread out in the various divisions, and they serve diverse consumer and enterprise requirements.

The Co-founder and Director of Spacewood, Kirit Joshi, said, “We are excited to have A91 Partners on board. Beyond capital, they bring deep experience in scaling consumer brands, which will be invaluable as we embark on our next growth phase.”

Quotation Source: MarcaMoney  

Financial goals and market presence

Spacewood has a robust presence in the market with a dual focus strategy spanning enterprise and consumer markets. Through its enterprise business, which is led by the Spacewood Office Solutions (SOS) division, it serves some of the largest corporations and real estate developers in India. SOS has managed to provide workplace solutions to more than 1000+ companies, among them being the names Accenture, Capgemini, HDFC, and Adani Group.

Spacewood also collaborates with most educational institutions in their furniture needs. The Sumai Doors subsidiary of the company has also strengthened its B2B credibility through its association with more than 200 developers in India, with major partners being Godrej Properties, DLF, Lodha, M3M, and Kolte Patil.

Spacewood has had 35+ exclusive stores in 20+ cities on the retail front and has an extensive dealer network of more than 500+ partners distributed in 150 towns and cities. The company has some ambitious expansion plans, as it plans to expand its physical presence to 100 stores around the country in the coming years, as well as strengthen its omnichannel presence by investing in prominent platforms such as Amazon and Pepperfry.

Spacewood Furnishers has established vigorous fiscal targets after the investment. The company is forecasting to reach group revenues of about ₹700 crore during the Financial Year 2026 (FY26).

Through the strategic support and resources of A91 Partners, Spacewood is expected to speed up its revenue curve. The company is aiming to achieve an annual growth of 25-30% in the coming five years with an ongoing emphasis on ensuring that the company maintains its profitability in the process. This growth rate is specific and indicates the confidence of the company in taking a larger share of the fast-growing market of Indian home and office improvement market.

The Partner at A91 Partners, Abhay Pandey, said, “We are looking forward to the opportunity to partner with Kirit, Vivek, and Nitin in further building a dominant company in the large and growing market of home and office improvement.”

Quotation Source: MarcaMoney  

Conclusion

Spacewood Furnishers has raised ₹300 crore from A91 Partners, which values the company at ₹1,200 crore, and this would be a turning point in the history of the company. This strategic investment will be directed towards key sectors like technology upgrades, process automation, and acquisition of talent in order to reinforce its operations and develop its network in stores. Having the support of A91 Partners, Spacewood has a high chance to obtain its group revenues of ₹700 crores by the end of FY26 and a growth rate of 2530 percent annually in the next five years of operation, becoming a force in the Indian home and office improvement industry.