Kishore Biyani-led Future Group has agreed to acquire Rocket Internet-backed online furniture and home furnishings store FabFurnish.com.
Bengaluru | Apr 6, 2016 01:03 PM IST.
Future Group, which runs an offline furniture store under the Home Town brand, didn’t disclose the amount of the all-cash deal but said it will pay Rs 4.86 for each FabFurnish share.
FabFurnish, operated by Gurgaon-based Bluerock eServices Pvt Ltd, posted revenue of Rs 78.93 crore for 2014-15 compared with Rs 47.22 crore the year before. It competes with online furniture sellers such as UrbanLadder.com and Pepperfry.com, besides horizontal e-commerce players such as Flipkart, Snapdeal and Amazon.
Future Group is one of India’s biggest brick-and-mortar retailers. It operates the hypermarket chain Big Bazaar, supermarket chain Food Bazaar and gadget and consumer durables store eZone, among others.
FabFurnish, which is also backed by Sweden-based Investment AB Kinnevik, earlier followed an inventory-cum-marketplace model but last year pivoted into a full-fledged marketplace.
FabFurnish had restructured its upper deck as part of a move in which ‘co-founders’ Vikram Chopra and Mehul Agrawal stepped down from daily responsibilities. The firm’s third co-founder Vaibhav Aggarwal also quit the company last year to launch branded budget hotel aggregator FabHotels (formerly Casa2Inns).
By Debjyoti Roy, VcCircle.