Even though it has achieved BEP in Q3 2023, Dekoruma chooses to postpone the IPO ahead of the election

Dekoruma had targeted an IPO at the end of 2023. However, this plan may be postponed because the company is considering the market situation ahead of the elections in early 2024.

Co-Founder & CEO of Dekoruma Dimas Harry Priawan reveals that it is being intensively added offline presence outside the island of Java. According to him, IPO is a fundraising option which can later be used to increase Dekoruma's business scale, including store expansion.

"We definitely need funds because we are starting to expand outside the city too. However, the beginning of next year doesn't seem conducive for an IPO. Not because the market isn't good, yes, because it's a political year. So, we wait and see Formerly. "We're not in a rush, investors are already solid," said Dimas when met at GDP Venture's Power Lunch, Tuesday (24/10).

Dimas revealed that Dekoruma already had one fundamental healthy business since several years ago. The claim is that Dekoruma has reached it break even in the third quarter of 2023. He targets break even a full year can be realized in 2024.

Asked about plans to raise new funds before the IPO, he also admitted that he had not thought about it yet. "For us, fundraising currently for expansion, different from 2-3 years ago where capital was used for R&D and survival. We already know where [profitability] is going, but we haven't thought about it yet fundraising."

Dimas also gave a signal to expand his business line to new products/services next year. The current focus is on strengthening its position in the B2C segment instead of entering the market into B2B or wholesale.

Last time, Dekoruma announced funding in August 2021 with proceeds of $15 million (around Rp. 216,8 billion). Investors involved include Nexter Ventures by SCG Cement-Building Materials, KTB Network, including previous investors Global Digital Niaga (Blibli), OCBC NISP Ventura, and Foundation.

Train omnichannel

Furthermore, Dimas explained how to approach omnichannel very necessary for his business. Since its inception, Dekoruma has operated as online marketplace for product home & living. In 2019, Dekoruma experimented with marketing products through outlets offline.

"Why offline? Buyer experience. Furniture needs to be tested or tried, whereas online [sales] will not be able to provide that. During the pandemic, Sales rose significantly so we decided to invest in opening an offline outlet," he said.

This also explains the reason for Dekoruma's incessant expansion outside Java over the last few years. High market interest from both segments middle low nor middle high in this area.

In 2022, Dekoruma will open 16 stores in Jabodetabek. Then, Dekoruma added eight more outlets in a number of non-Javanese cities, including Medan, Palembang and Makassar this year. According to Dimas, the expansion of offline outlets has resulted in reduced marketing costs compared to before when they were still fully online.

"Expansion offline very outside the city challenging from the supply chain and operational side. So, we don't just open. "If macroeconomics is not good, it will impact our business," he concluded