India’s $34 billion furniture sector has been rapidly growing in recent years, with demand for sofas, recliners, wardrobes and beds climbing, as younger consumers with more disposable incomes splurge online and upgrade more frequently.
“The idea is (to touch 10 billion rupees ($115.90 million) in revenue) and profitability in the next three years… and going public,” WoodenStreet founder and CEO Lokendra Ranawat said in an interview last week.
WoodenStreet reported sales of 2.55 billion rupees and net loss of 109 million rupees in fiscal 2024, marking its first loss in at least half a decade, data from business insights provider Tofler showed.
To hit its target, WoodenStreet is aggressively expanding into the mattress category with its new “Penguin Sleep” brand, Ranawat said, tapping into post-pandemic consumer focus on wellness, while also making a strong push in modular furniture.
WestBridge Capital-backed WoodenStreet, which late last year raised $43 million from Premgi Invest to boost its workforce and manufacturing, sells furniture, from sofa to decor, online and also runs 104 stores across India. Ranawat said WoodenStreet plans to triple its store count within 18-24 months, focussing on major cities, while also considering opportunities in smaller ones. WoodenStreet’s rival Wakefit filed for an initial public offering last month, while Duroflex, which also owns the “Sleepyhead” mattress brand, said in April it was looking to go public in the next 18 months.
When asked if WoodenStreet would consider a deal akin to Reliance’s purchase of its peer Urban Ladder, Ranawat said: “The target is to make it a sustainable and long-term independent brand.”
($1 = 86.2800 Indian rupees)
