Bengaluru, March 7, 2016: Mygubbi.com, a fast growing online home interior décor and furnishing company, today announced that it has raised $2.5 million in seed funding from multiple angel investors led by Vipul Parekh, Co-founder, Big Basket; Ananda Kallugadde, Co-Founder NeoBytes and Rajesh K Murthy, EVP of Infosys.
myGubbi has been delivering high end home interior décor and furnishing solutions in Bengaluru since September 2015 and has over 50 successful home completions in a short time span. Buoyed by the investors’ strong belief in the company’s business model and go-to-market strategy, myGubbi is gearing up for an accelerated growth path as it aims to secure a sizeable share of the Home interiors market.
Announcing the funding, Ravi Rao, Co-Founder, myGubbi, said, “We started in 2015 and the seed funding is a testimony to the efficacy of our profitable yet scalable business model and high growth prospects. The only way to tap into the vast potential offered by the Indian home interiors market is to reach out to consumers through an online channel, yet provide enough offline touch points to cater to the pensive needs of individual home owners.”
The online furniture market size in India is estimated to be around $30 billion. “myGubbi has sound business principles based on unit economics, and we have clear visibility on achieving operational break even. Currently, the company is focused on setting up innovative technology driven systems and processes required for the e-commerce business”, added Ravi.
The myGubbi model addresses a key challenge in the execution of home interiors: providing end-to-end solutions from designing to execution, along with the flexibility of customization. The average consumer budget for interiors stands at upwards of Rs 5 lakhs, and consumers are not yet willing to depend purely onthe online channel for finalizing their interiors. Acknowledging this consumer sentiment, myGubbi has successfully blended strong service delivery with a marketplace model and utilizes a seamless blend of online and offline approaches. With a belief that a robustback-end infrastructure is required for sustaining service delivery quality, Mygubbihas invested in creating backward integration which is a fully-operational assembly unitandan experience center.
Elaborating on the expansion plans for myGubbi, Umesh Sangurmath, Co-Founder and CEO, says, “We have been gaining good traction in the Bengaluru market and are targeting a monthly run rate of about 100 homes in Bengaluru alone. We are also expanding to Mumbai, Pune, Mangalore and Coimbatore over the next few months. While we are sufficiently funded and are invested in developing our core assets, we are also in advanced stages of discussion with investors to raise Series A investment to accelerate our expansion into other cities.”
Commenting on the investment made Vipul Parekh said “What persuaded me to invest was the competence of the founders’ and their past track record of incubating and growing large businesses. I have strong belief in myGubbi’s capability to achieve scale and build sustainable business”
Rajesh Murthy who has been handling multi-billion dollar business for Infosys can relate to the scope of technology to change the interior business. “Interiors and Decor is a high touch point and large ticket size business that needs high service delivery standards. I believe myGubbi is making the right investments and building a strong model to establish service delivery standards that will be hard for others to emulate” said Rajesh.