A91 Partners acquires 25% stake in Spacewood Furnishers for ₹300 crore
Mumbai: A91 Partners has invested ₹300 crore for a 25% stake in Nagpur-based Spacewood Furnishers, a modular furniture manufacturer, marking the private equity firm’s latest bet in the consumer manufacturing segment.
The deal values the overall business at ₹1,200 crore valuation and Spacewood will use the fresh capital towards brand building and operational strengthening, according to a press release.
The funding will also support technology upgrades, process automation, and talent acquisition to improve its operations and retail presence.
The transaction underscores rising investor interest in India’s organized furniture and home improvement market, which has seen renewed demand since the pandemic as consumers channel more of their discretionary income toward upgrading living spaces.
“The top two categories that Indian consumers are spending their incremental income on are travel and improving home space,” Abhay Pandey, general partner at A91 Partners told Mint.
“There is a lot more opportunity to grow with the support of capital and the addressable market is also large. Organized players like Spacewood have a lot of scope of 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 largely fragmented with multiple regional players competing for their share of the pie. Spacewood’s latest fundraise will give it the necessary competing prowess to bolster its offerings, improve technological abilities and establish brand presence in the segment.
As per a report by India Brand Equity Foundation (IBEF), a trust under the commerce ministry, the Indian furniture market is likely to grow at a CAGR of 10.9% to $32.7 billion by 2026.
Kirit Joshi, co-founder and director of Spacewood, said the partnership will help the company scale faster. “Beyond capital, they bring deep experience in scaling consumer brands, which will be invaluable as we embark on our next growth phase.”
Spacewood’s earlier investors Brand Capital and Sumitomo Forestry, who came on board in 2015, have fully exited their holdings.
The company was founded in 1996 by Kirit Joshi and Vivek Deshpande in Nagpur. Subsequently, Nitin Sudame joined the company in 2011 as the founder of Spacewood Office Solutions (SOS) brand to lead its expansion into the office furniture segment.
In recent times, the company has benefited from the post-pandemic migration tailwinds with fewer people moving from tier 2 and 3 areas to cities. “This has dramatically improved our opportunities there. We are now a tier-2 focused company and we get about 40-50% of our revenues from these areas,” Joshi said.
The company reported revenue of ₹600 crore in FY25. It expects to touch ₹700 crore in FY26, targeting 25–30% annual growth over the next five years while maintaining profitability.
It reported an operating revenue of ₹374.86 crore on a profit of ₹52.8 crore in FY24, according to a Crisil report in April.
Spacewoood currently has over 35 exclusive stores across more than 20 cities with a dealer network of over 500 partners in 150 towns and cities. It plans to expand its presence to over 100 stores pan-India in the next few years.
The company sells furniture through online platforms such as Amazon and Pepperfry, using a mix of franchisee and company-owned formats. Its top competitors include Stanley Lifestyles, Dash Square and Verantes Living, according to Tracxn.
Looking ahead, Spacewood is eyeing a public listing in 4-5 years. “We first have to take our revenues to a substantial level. I think we could be ready for an IPO in the next 4-5 years. Our aim is to grow to a reasonable size and establish a good consumer presence, and that is our priority now,” Joshi said.
