[Funding alert] Cityfurnish raises $5M from Venture Highway, Gmail and Youtube founders
Gurugram-based furniture and consumer appliances rental startup Cityfurnish has raised funding of $5 million from investors including Gmail Founder Paul Buchheit, Youtube Founder Steve Chen, Global Founders Capital, Venture Highway, Soma Capital, SCM Advisors, Boomerang Ventures, and a few other angel investors and HNIs.
The startup was recently part of US-based accelerator programme Y Combinator winter batch of 2019.
Founded in September 2015 by Neerav Jain and Saurabh Gupta, Cityfurnish's idea came from Neerav's personal experiences while staying at a rented accommodation during his college days at Delhi University. Finding an affordable place to stay was not enough, finding good quality furniture that fits the bill and utility on top of that, was not a pleasant experience. This further intrigued the team to establish the company so that millennials, especially the migrant population, do not have to spend their resources on buying furniture, furnishings, home appliances, and fitness equipments.
Apart from residential furniture, the company also has an accelerating presence in the commercial and hospitality segments.
The company is also starting a furniture subscription programme with pay as you go model and no minimum commitment. In this model, the customer will not only be able to subscribe to their products, but also would be able to change packages as per their need without any extra cost. Saurabh Gupta, the Co-founder of the company said, the funds will be used to strengthen the company’s brand position, technology, and expansion in new cities.
The company aims to expand its business in 14 cities by 2020. The brand is currently servicing cities including Delhi NCR, Bengaluru, Mumbai, and Pune and is now working on expanding to Hyderabad and Chennai.
Cityfurnish works out of nine warehouses across five cities including Noida, Gurugram, Mumbai, Pune, and Bengaluru, and is looking at expanding further to newer markets.
The startup claims it has witnessed a 100 percent YoY growth in FY 2018-2019, and has expanded exponentially with a 100 percent subscriber growth rate and 50 percent customer retention rate in the last 12 months.