CapriCoast which is a modular furnishing marketplace, has raised $3.5 million from existing investor Accel Partners with participation from Singapore-based boutique venture capital firm RB Investments, in Series-A funding.
The raised capital will be deployed for hiring talent in the areas of technology, sales and marketing.
Capricoast was founded by Jawad Ayaz who previously founded decor marketplace Zansaar. The company which recently pivoted to O2O model had previously raised over $1 million from Accel.
As a part of the deal, CapriCoast’s head of marketing and sales Jidesh Haridas, who previously worked at Zansaar, will take up the role of chief operating officer (COO) following this round of funding.
The startup has tied up with companies like Spacewood, StyleSpa and Asian Paints subsidiary Sleek International. It claims that the average ticket size has gone up to Rs 3.5 lakh from Rs 2 lakh previously, after the company shifted to the current O2O strategy.
Recently, HomeStudio, a month old company which deals in the same segment, secured $5 million from Bren Corporation, a real estate developer based out of Bangalore. Similarly, players like LivSpace and HomeLane have raised multiple rounds already.
The furniture and furnishings market in India is estimated to be of $20 billion (the furniture market alone stands at $10 billion) in size and ranked as the fifth largest market in the world. However, on a per capita basis, the market is still under penetrated compared to more matured markets. While eCommerce players in fashion and electronics have witnessed massive customer adoption over the past few years, the furniture market is yet to reach such an exalted position in the online space. Nevertheless, given that the market is largely untapped, it renders a good opportunity to players to exploit its potential.