The Kishore Biyani-led Future Group is reportedly buying online furniture store Rocket Internet backed FabFurnish.com for an undisclosed amount. The deal amount is expected to vary between Rs.15 crore and Rs.20 crore in cash.
Future Group owns a home and furnishing business under the brand HomeTown which is present in 20 cities. Post acquisition, FabFurnish’s management team including 100 odd employees are likely to join Future Group. According to Biyani, HomeTown is expected to become a Rs.800 crore-1,000 crore business by the end of current financial year for Future Group.
Once deal closed, it will mark Berlin-based Rocket Internet’s first exit in India which also backs Foodpanda and Jabong.
FabFurnish faced tough competition from companies like Pepperfry and Urban Ladder that are backed by investors such as Goldman Sachs and Sequoia Capital. In July 2015, FabFurnish’s founders Mehul Agrawal and Vikram Chopra quit the company to start their own venture and the company appointed senior directors Ashish Garg and Ankita Dabas to take over management functions.
Gurgaon-based FabFurnish was founded in 2012 by Chopra, Agrawal and Vaibhav Aggarwal, it has raised over $30 million from Rocket Internet and Kinnevik so far.
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