Dekoruma Announces Funding of 216,8 Billion Rupiah, Immediately Achieves Positive EBITDA and Plans IPO

Dekoruma announced the acquisition of series C1 funding of $15 million or equivalent to 216,8 billion Rupiah. The investors involved are Nexter Ventures by SCG Cement-Building Materials, KTB Network, and several previous stage investors including Global Digital Niaga (Blibli), OCBC NISP Ventura, and Foundational. The additional capital will be used for the expansion of the Experience Center outside Jakarta and product/service development.

"Our focus now is to grow our business and achieve positive EBITDA by the end of 2022. Then, we will prepare for an IPO around the end of 2023," continued Dimas.

Previously the company announced pre-series C round in May 2020 then with the participation of InterVest Star SEA Growth Fund 1, Foundational, OCBC NISP Ventura, and Skystar Ventures. Investors in the previous round also participated.

Dekoruma also received series A funding from Skystar Capital, Beenext, and Convergence Ventures in 2016. Then in the series B round in 2018, they booked a million dollar fund led by Global Digital Niaga (Blibli) and AddVentures.

O2O concept

Debuted in 2016, Dekoruma was originally a platform online marketplace for furniture products. Along with its development, they are now trying to connect consumers with furniture traders, interior designers, contractors, to property developers.

In 2019, they began to strengthen their business model with a online to offline (O2O). With the spread of the Experience Center in various cities, the company says it managed to get 2x productivity per square meter, including reducing acquisition costs and increasing purchases online in the city concerned.

"The products and ecosystem we have built have eliminated the inefficiencies that plague the industry. This means more affordable products and highly transparent services that our customers and partners love. We will improve by expanding our business beyond Jakarta and partnering with more partners and property developers ," said Dekoruma Co-founder & CEO Dimas Harry Priawan.

From the statistics submitted, currently Dekoruma has served more than 1 million customers, with more than 5 thousand designer and contractor partners covering tier-1 and tier 2 cities. It is also claimed that over the last 18 months revenue has increased 3x. Their next target will be to come to 8 new cities in the next 2 years.

New product

On the Dekoruma platform, currently users are also presented with services proptech form listing property products (apartments/houses). Dimas said, the MVP for this product has been started since the end of 2019. Apart from being a request for property developer partners, this feature is also based on several problems that according to them are still often encountered in the local property market, namely the non-uniform quality of property agents and the home buying process. less transparent.

"Unlike markets in other countries such as America and Singapore, there is no specific regulation regarding Property Agents. Everyone can become a property agent, but not necessarily they know about details such as contracts, legalities, and processes. Here, all of our agents will go through strict training and control processes, and assisted by our application which has been running for almost 2 years, can provide good and consistent service," he said.

In addition, Dekoruma also launched NOMA, an interior design management system. Currently the application has been used by 5 thousand users from interior designers and architects in their network. "NOMA is like the game The Sims, where users can design rooms using a catalog of items from marketplace platforms decorum. This can provide price transparency and availability of goods," said Dimas.

This platform also bridges business processes when there are social restrictions due to the pandemic. Customers can discuss with designers virtually via NOMA. The only time required for a physical meeting before the construction process is when customers visit the Dekoruma Experience Center to feel, feel, and touch the various materials and products firsthand.

Next plan

Menurut report, the global furniture product market size has reached $64,08 billion in 2021 and is projected to grow to 81,45 billion in 2025 with a CAGR of 9.09%. Studies in the United States, 40% of growth has been contributed from the segment online. The potential is certainly wide open for all countries, including Indonesia.

Regarding market share, Dekoruma itself specifically targets the middle class with an age range of 26 to 38 years. Although it does not mention detailed figures, so far the furniture products that have experienced a rapid increase are sofa-bed and home office. Request kitchen sets also observed to increase sharply on the platform.

The large market potential and solid business model have strengthened the company to prepare for the next strategic step. Regarding the IPO, Dimas said, “We have a healthy, growing and delivering business value for the ecosystem home living Indonesia. The IPO can provide us with a stronger foundation for us to become a bigger and better company.”

There is not much that can be shared about the IPO, including its relation to being listed on local exchanges or the United States. Dimas said that currently his party is still conducting a study for further consideration.