New Delhi, Nov. 6 -- Growth-stage alternative investment firm A91 Partners has invested Rs 300 crore (around $33.9 million) in Spacewood Furnishers Pvt. Ltd, valuing the Nagpur-based modular furniture manufacturer at around Rs 1,200 crore (around $135.5 million).
With the new funding, Spacewood plans to deepen its presence in Tier 2 cities and strengthen its position in the mass-premium and premium furniture segments, where demand has been rising amid growing urban housing and office expansion, the company said in a statement.
The announcement comes a year after VCCircle reported that Spacewood was looking to raise fresh capital.
Founded in 1996 by Kirit Joshi and Vivek Deshpande, Spacewood produces modular kitchens, wardrobes, home furniture, and pre-hung doors. The company also operates an office furniture division, Spacewood Office Solutions (SOS), led by Nitin Sudame.
Spacewood said it will use the fresh capital to expand its retail presence, invest in automation and technology, and strengthen its brand. The company, which expects to close FY26 with about Rs 700 crore in revenue, plans to grow at an annual rate of 25-30% over the next five years, according to its management.
Joshi said the partnership with A91 would help Spacewood scale faster in both home and office furniture categories. "They bring experience in building consumer-facing brands, which will be valuable as we expand operations," he said.
Abhay Pandey, general partner at A91 Partners, said the investment reflects confidence in the rising demand for home and office improvement products in India. "We see strong potential for Spacewood to become a leading player in this market," he said.
Spacewood operates a one-million-square-foot manufacturing facility in Nagpur, equipped with advanced panel and sheet metal processing technology. The company has more than 35 exclusive stores in over 20 cities and a dealer network of 500 partners covering 150 towns. It aims to scale up to 100 stores in the next few years while expanding sales through online platforms such as Amazon and Pepperfry.
On the enterprise side, the SOS division has supplied furniture and workspace solutions to over 1,000 companies, including Accenture, Capgemini, HDFC, and the Adani Group. It also works with several real estate developers through its Sumai Doors business, which supplies to firms such as Godrej Properties, DLF, Lodha, M3M, and Kolte Patil.
Published by HT Digital Content Services with permission from VC Circle.