A91 Partners acquires 25% stake in Spacewood Furnishers for ₹300 crore
Mumbai: A91 Partners invested ₹300 crore for a 25% stake in Nagpur-based Spacewood Furnishers, a modular furniture maker, marks the private equity firm’s latest bet in the consumer manufacturing segment.
The deal values the overall business ₹1,200 crore valuation and Spacewood will use the fresh capital for brand building and operational strengthening, according to the press release.
The fund will also support technology upgrades, process automation and talent acquisition to improve its operations and retail presence.
The transaction underscores growing investor interest in India’s organized furniture and home improvement market, which has seen renewed demand since the pandemic as consumers channeled more of their discretionary income into improving their living spaces.
“The two categories where Indian consumers spend most of their increased income are travel and home improvement,” said Abhay Pandey, general partner at A91 Partners. Mint.
“There is much more opportunity to grow with capital backing and the addressable market is also large. Organized players like Spacewood have a lot of scope for disruption as the market is still fragmented,” Pandey said.
Some of A91’s other investments in the consumer space include Akshayakalpa Organic, BlueTokai, Technosport, Healthkart and Plum.
A slice of the market
India’s furniture market is highly fragmented with multiple regional players vying for their share of the pie. Spacewood’s latest fundraising will give it the competitive edge needed to bolster its offerings, enhance its technological capabilities and establish brand presence in the segment.
According to a report by India Brand Equity Foundation (IBEF), a foundation under the ministry of commerce, the Indian furniture market is expected to reach $32.7 billion by 2026, at a CAGR of 10.9%.
Kirit Joshi, co-founder and director of Spacewood, said the partnership will help the company scale faster. “Beyond capital, they bring deep experience scaling consumer brands, which will be invaluable as we enter our next phase of growth.”
Spacewood’s previous investors, Brand Capital and Sumitomo Forestry, which joined in 2015, have exited their holdings entirely.
The company was founded in Nagpur in 1996 by Kirit Joshi and Vivek Deshpande. Later, Nitin Sudame joined the company in 2011 as the founder of the Spacewood Office Solutions (SOS) brand, leading the company’s expansion into the office furniture segment.
Recently, the company has benefited from post-pandemic migration tailwinds, with fewer people moving from tier 2 and 3 areas to cities. “This has significantly increased our opportunities here. We are now a tier-2 focused company and generate around 40-50% of our revenue from these areas,” said Joshi.
Company’s income announced ₹600 crore in FY25. waiting to be touched ₹700 crore in FY26, targeting 25-30% annual growth over the next five years while maintaining profitability.
reported operating income ₹374.86 crore profit earned ₹52.8 crore in FY24 as per Crisil report in April.
Spacewoood currently has over 35 specialty stores in over 20 cities and a dealer network of over 500 partners in 150 towns and cities. It plans to expand its presence to more than 100 stores across India in the next few years.
The company sells furniture through online platforms such as Amazon and Pepperfry, using a mix of franchised and company-owned formats. According to Tracxn, its biggest competitors include Stanley Lifestyles, Dash Square and Verantes Living.
Looking ahead, Spacewood plans for a public listing in 4-5 years. “First of all, we need to increase our revenues to a significant level. I think we can be ready for an IPO in the next 4-5 years. Our goal is to reach a reasonable size and create a good consumer presence and this is our priority right now,” Joshi said.
