An Indian furniture e-retailer startup - Pitch for VC funding

1. PRESENTED BY: GROUP 5
SAIRAM CHEKKILLA (PGP01017)
HIMANI HOODA (PGP01021)
IIM AMRITSAR

2. ONLINE FURNISHING
MARKET OVERVIEW
• India’s home décor and furniture market is worth $20
billion (about Rs. 120,000 crore), with less than 10% of
it being organised play
• Furniture makes up 2/3rd of the market, with the
largest offline player’s revenue pegged at less than
$100 million
• The organised residential furniture market is expected
to triple in size to become $1.3 billion in the next 5
years, growing at a CAGR of 27%; this would be
around ~9% of $15 billion ( expected) residential
furniture market by 2020

3. Furnishing & Home Décor Company
Founded In: July 2012
Founded By: Rajiv Srivatsa and Ashish Goel
Headquarters: Bengaluru
Private Label Brand
Reach: 19 cities (including Tier II and Tier III)
Revenue: GMV of $250 Million By June 2017 (expected)
ABOUT
THE
COMPANY

4. CORE VALUES
• Customer obsession:
We will consistently strive to ensure that our customers are delighted at the end of
every little interaction with us. We are all ears to any feedback that can help improve
every interaction.
• Honesty and transparency:
What we know and what we do is out there. We place a premium on sharing
information honestly with all stakeholders.
• Excellence in every small thing we do:
We indulge in attention to detail at every step of our journey. Hundreds of such
small steps ensure that every customer gets great furniture and great service.
• Fun as a way of Life
• Stepping up to create a magic

5. PRODUCTS OFFERED
• Sofas • Beds • Dining • TV Units • Mattresses

6. BUSINESS MODEL
Customer
Segment
• Focused on the
customers who are
looking at
functionality and
product quality and
are willing to pay a
premium for the
same
Value
Proposition
• Products focused on
furniture and related
décor products, with
limited range of brands
• Simplified furniture
selection by providing
detailed pictures and
measurement of each
product
• ‘A look by space’
services
Channels
• Primary: Website &
Social Media
• User stories posted on
the website
• Videos on Youtube
showing product
and functionality
Customer
Relations
• Focus on developing
long-term relationship
with a focus on sharing
user stories and
simplified it for a
customer to make
choice

7. Revenue
Stream
• Product Sale
Key
Resources
• Furniture &
Packing Design
Team
• Logistics & Setup
Team
• Back Office Team
• Customer Stores &
Layout Ideas
Key
Activities
• Product designs
• Enhancing
customer
experience
Key
Partners
• Product suppliers
(brands & other
manufacturers)
• Logistics Offered
• Customer stories
(experiences &
feedbacks)
Cost
Structure
• General resources
• Partner cost
• Product
• Customer
• Product design
BUSINESS MODEL Contd.

8. SEGMENTATION

9. TARGET CUSTOMERS’ PROFILE
• Anyone buying a home in Rs. 40-50 lakh range, will go for furniture in Rs. 4-5
lakh range, including kitchenware. That’s our target customer
• Anyone in the renovation cycle, who bought a house several years ago, might
want to re-do a room or several rooms because they are bored of it. That is a
big second audience.
• And a big third audience is anyone moving cities among the top 30 cities, who’s
probably married but have still not bought a home where they are looking to
do-up some part of their house.
• All these three are the audience that span across the board

10. • Demographic: They are well-read, educated, earning well, between ages of 23-
45, who will buy online, and are used to shopping online
• Psychographic: They are design conscious, socially aware and active, digitally
buy stuff, including lifestyle purchases from the likes of Myntra or Jabong
• Behavioural: They are willing to buy big ticket items at a single click and are
finding it far more convenient to shop online, as it ensures them to check out
how the furniture would look in their home settings
• During the festive and wedding season, there is an impressive surge in the
number of buyers as this is the time when people like to renovate their homes
and buy new furniture
TARGET CUSTOMERS’ PROFILE

11. TARGETING

12. SEGMENT SIZE AND GROWTH
• Furniture and Furnishings market in India has been growing at a compounded
annual rate of 6-8%.
• 90% of this market is unorganized, with a large number of unbranded players
and local carpenters. The branded organized retail segment account for 15% of
the market and 0.5% of the market is captured by online retailers, so there is
significant headroom for Urban Ladder to grow.
• India’s furniture market is estimated at $15-20 billion (Rs.93,000-1,24,000 Cr.) in
India alone.
• The furniture category is big and offers a great opportunity as there isn’t a single
player who is valued for more than $100 million.

13. TARGETING DIGITALLY SAVVY, URBAN
AUDIENCE THROUGH TECHNOLOGY
• Urban Ladder launched three apps – Urban Storage, Living Spaces and Core Catalogue
app, through which it provides home trials, consultation and augmented reality of 5,000+
furniture.
• Furniture is a complicated product to buy. It’s a high touch and feel product, and is non-
standard. It’s also a higher ticket purchase than most other purchases. The front-end
experience of the website and mobile apps help the consumers easily discover, navigate and
browse the selection of products.
• It also helps consumers get true and rich information around each product, and make them
get a sense of both how the product looks and fits in their house. Last but not the least it
gives them a sense of trust.
• High investment on mobile technologies to provide a great experience on areas like
visualisation, personalisation and app development to target it’s chosen segments.

14. POSITIONING

15. POSITIONING
• Ashish Goyal, Founder wants “Urban Ladder to be the reason why homes
across India look beautiful.”
• They intend to be a complete home solutions provider in the coming days. They
want to strengthen their décor portfolio to graduate from an online furniture
store to a one-stop home furnishings provider.
• To position themselves, Urban Ladder had only recently jumped into TV, but its
initial efforts were focused on broad-reaching demography.
• Founders believe organic growth coupled with social media marketing and
positive word-of-mouth are sufficient for them.

16. LEVEL OF COMPETITION
• Horizontal Players:
Flipkart, Snapdeal, Myntra, Amazon (These players
have 50 times their traffic)
• Vertical Players:
Pepperfry (January 2012), Fabfurnish (March 2012),
HouseFull (August 2006) and Zansaar.com
• Offline Players:
Home Town, Lifestyle Home Centre, Godrej Interio,
Fab India, Style Spa, DLF Pure, Evok (Hindware)
• The company is gearing up to face Ikea, the Swedish
furniture and home décor giant’s expected entry into
Indian market

17. VENTURE CAPITALISTS

18. VC FUNDING
• $3 Million Debt Financing received
on August 23, 2016
• $77 Million in 4 rounds from 7
investors till date

19. • Helion Venture Partners
• Sequoia Capital
• Nexus Venture Partners
• IDG Ventures
• Vantureast Fund Advisors
India Limited
SUGGESTED VENTURE CAPITALISTS
TO PITCH FOR

20. VALUE PROPOSITION FOR VCS
• Growing market
(as discussed in market analysis)
• Promising business plan
• Rapid firm growth
• Company valued at $250-300 Million (approx.)
• Gross merchandise value is Rs. 300 crore (approx.)
• Business expansion plans in future
• In response to customer requests on launching allied
categories such as bathroom accessories, wall art etc.

21. EXIT STRATEGY: MERGER AND ACQUISITION
• Going into a similar company or allow the
business to be bought by a larger
company that can benefit from the
merger and acquisition
• When company has reached a desired
valuation ($5 Billion i.e 32000 Crores)
• Merge with IKEA for global reach and
business
• Both companies can win, combine
resources and grow into something more
that can change the direction of the
market

22. THANK YOU!!!