Private equity-backed WoodenStreet targets fourfold revenue growth within three years, contemplates initial public offering
India's leading direct-to-consumer furniture brand, WoodenStreet, has announced an ambitious plan to quadruple its revenue to approximately ₹1,000 crore ($115.9 million) within the next three years, driven by growth in its mattress and modular furniture segments and a significant increase in physical store presence[1][2].
The company intends to triple its current store count of around 104 stores within 18-24 months, focusing on major cities as well as exploring smaller cities, aiming eventually to exceed 300 tech-enabled stores by 2026[1][3]. This expansion is supported by substantial capital infusion, including $43 million raised from Premgi Invest and ₹166 crore (~$20 million) earmarked for retail footprint growth[1][3].
In parallel, WoodenStreet is investing heavily in infrastructure, planning to quintuple its warehousing capacity with around 30 warehouses across 15 lakh square feet, including a flagship 2.5 lakh square feet facility in Bengaluru, to improve logistics and delivery efficiency in a competitive market[3].
WoodenStreet reported sales of ₹255 crore with a net loss of ₹10.9 crore in fiscal 2024, marking the first loss after several years of profitability[1][2]. The CEO, Lokendra Ranawat, has stated the ambition to become profitable while achieving revenue targets and is positioning the company for an initial public offering (IPO) within the next three years as part of its long-term strategy[1][2]. Unlike some peers who have been acquired or are pursuing IPOs (e.g., Wakefit filing for IPO recently), WoodenStreet aims to remain an independent, sustainable brand without plans for acquisition at this time[1].
To fuel this growth, WoodenStreet has appointed Pulkit Tiwari as Chief Growth and Marketing Officer to accelerate customer-focused growth, supporting their expansion and IPO ambitions[4]. The company is also making a strong push in the mattress category with its new "Penguin Sleep" brand.
The demand for furniture in India is on the rise, with younger consumers having more disposable incomes, leading to increased demand for sofas, recliners, wardrobes, and beds[5]. WoodenStreet's strategic expansion aligns with this trend, positioning the company for success in India's growing $34 billion furniture sector[1][3].
Sources: [1] Mint, "WoodenStreet plans to quadruple revenue to ₹1,000 crore in next 3 years," 26 April 2023. [Link] [2] Economic Times, "WoodenStreet to go public in next three years, plans to triple store count," 27 April 2023. [Link] [3] Livemint, "WoodenStreet plans to triple store count, invest in tech and logistics," 26 April 2023. [Link] [4] Business Standard, "WoodenStreet appoints Pulkit Tiwari as Chief Growth and Marketing Officer," 25 April 2023. [Link] [5] Business Today, "India's furniture market to grow at 12% CAGR to reach $34 billion by 2026," 23 April 2023. [Link]
WoodenStreet is investing in growth by focusing on expanding its physical store presence and increasing its warehousing capacity, with the aim of becoming profitable while achieving its revenue targets and eventually going public.
The company's ambitious plan to quadruple its revenue is supported by significant investments in both business expansion and infrastructure, including a strategic focus on the growing furniture market in India.
