Interior Design Startup Flipspaces Bags $35 Mn

Interior design startup Flipspaces has raised $35 Mn (INR 295.8 Cr) in a mix of primary and secondary capital led by Iron Pillar.

The round also saw early investor Carpediem making an exit, while existing investor Prudent Investment Managers and Synergy Capital joined the fundraise.

The startup plans to use the fresh capital to expand its operations in India, US and UAE, enhance technology and strengthen the brand. It also aims to explore acquisitions in newer markets.

Founded in 2011 by Kunal Sharma, Ankur Muchhal, Vikash Anand and Mrinal Sharma, Flipspaces offers a tech-first, end-to-end platform for commercial interiors, aimed mainly at small and medium businesses (SMBs). It competes with the likes of Livspace, HomeLane and Bonito Designs.

The startup claims that the US market contributes 20% to its revenue. According to the company statement, both Indian and US operations are profitable, and it now plans to foray into the UAE market.

It claims to have delivered over 8 Mn sq. ft. of space for more than 1,000 brands, growing at 65% CAGR over the past four years.

The company uses its own tools for 3D visualisation, supply chain integration, and real-time project tracking. Its strategy includes targeting both SMBs and large enterprises.

The latest funding comes two years after it raised $4 Mn in its Pre-Series B funding round led by Prashasta Seth, founder of Prudent Investment Managers fund. 

Notably, the interior design-tech industry as a whole has seen a recent uptick, driven by the increasing demand for technology-enabled design solutions. Flipspaces competitor Livspace, for instance, raised $180 Mn in a funding round led by KKR in 2022, valuing the company at $1.2 Bn. 

It now plans to go public by 2026, while becoming one of the first startups to seek approval for its reverse flip using the fast-track mechanism.