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Modular furniture maker Spacewood Furnishings is reportedly in the final stages of securing Rs. 300 crore in funding from A91 Partners, a Mumbai-based investment firm. The deal is expected to value the Nagpur-headquartered company at around Rs. 1,200 crore, according to people familiar with the discussions. The investment will include both primary and secondary components—meaning that part of the funding will go directly into the company, while another portion will involve existing shareholders selling their stakes to new investors.
Expanding Footprint Across India
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 35 exclusive retail stores in over 20 cities and sells through a network of more than 500 dealers across 150 cities.
The new round of funding will help Spacewood expand its retail presence to 100 exclusive stores nationwide. According to one person aware of the deal, the funds will also be used to strengthen brand visibility, upgrade manufacturing capabilities, enhance the product portfolio, and attract skilled talent.
Spacewood’s massive 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 like Hometown, Urban Ladder, and Home Centre.
A Remarkable Turnaround Story
Spacewood’s journey hasn’t been without setbacks. A decade ago, Japanese building materials giant Sumitomo Forestry invested about Rs. 90–100 crore for a 26% stake, marking India’s first foreign direct investment in the furniture manufacturing sector.
However, the company was hit hard by the COVID-19 pandemic and a fire at one of its units in 2021, leading to heavy losses. Sumitomo eventually wrote off its investment, and Spacewood’s founders bought back the shares, regaining full control.
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 and EBITDA of Rs. 86 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.
Strategy and Growth Outlook
Industry sources suggest that Spacewood aims for 25–30% 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.
A person close to the deal said the upcoming investment “will help Spacewood accelerate growth through brand building, strengthening manufacturing, and expanding its design and retail ecosystem.”
A Dynamic Market
The furniture and home interiors sector in India has seen several strategic shake-ups in recent years. The Spacewood deal comes shortly after Pepperfry’s acquisition by flexible workspace provider TCC Concept in a share swap deal worth Rs. 659 crore. Once valued as a leading omnichannel furniture player, Pepperfry saw its revenues fall sharply from Rs 272 crore in FY23 to Rs. 164 crore in FY25, prompting the distress sale.
In another major development, HomeLane, an online interior design startup, acquired DesignCafe last year in a merger valued at Rs. 3,000 crore. The combined entity then raised Rs. 225 crore from investors such as Hero Enterprise, Claypond Capital, and WestBridge Capital, signaling continued investor interest in the Indian home interiors and furniture space.
As consumer demand for personalized, modular, and high-quality furniture continues to grow, Spacewood’s fresh funding could position it as a key player in a sector increasingly shaped by technology, brand experience, and design-led innovation.
