Spacewood Raises Rs 300 Crore at Rs 1,200 Crore Valuation to Expand Modular Furniture Business
- ByStartupStory | November 5, 2025
Nagpur-based Spacewood Furnishers, a leading modular furniture manufacturer, has raised Rs 300 crore (approximately $34 million) from private equity firm A91 Partners in a significant funding round. The investment values the company at around Rs 1,200 crore (about $136 million) and will support its ambitious growth plans focused on expanding retail presence, upgrading manufacturing capabilities, and strengthening brand visibility.
Founded in 1996 by Kirit Joshi and Vivek Deshpande, Spacewood produces modular kitchens, wardrobes, home and office furniture, and doors. It operates one of India’s largest integrated furniture manufacturing units spread over one million square feet in Nagpur. The company currently runs 35 exclusive stores across 20+ cities and supplies its products through a network of over 500 dealers in 150 towns.
With the fresh capital infusion, Spacewood plans to nearly triple its retail footprint by opening 100 exclusive stores nationwide over the next few years. The funding will also be used to diversify its product portfolio, enhance technological capabilities, and attract skilled talent to accelerate innovation and production efficiency.
Spacewood serves major B2B clients such as Accenture, Capgemini, HDFC, and the Adani Group through its office furniture division and supplies doors to over 200 real estate developers, including Godrej Properties, DLF Lodha, and M3M.
After facing financial setbacks during the COVID-19 pandemic and operational challenges such as a factory fire in 2021, Spacewood made a strong recovery, returning to profitability with a net profit of Rs 53 crore and EBITDA of Rs 86 crore in FY24, and revenues around Rs 600 crore. For FY25, the company is targeting Rs 700 crore in revenue with a projected annual growth rate of 25-30% over the next five years.
This funding round positions Spacewood to capitalize on India’s growing demand for modular and customizable furniture solutions that cater to urban living and office spaces, amid intensifying competition from brands like IKEA, Pepperfry, and HomeLane.
In summary, Spacewood’s Rs 300 crore funding from A91 Partners at a Rs 1,200 crore valuation marks a significant milestone, enabling it to expand retail operations, upgrade manufacturing and design capabilities, and strengthen its leadership position in India’s modular furniture market.
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