Interior design software startup Infurnia’s ₹38 crore IPO to open next week

• The Bangalore-based startup is looking to raise ₹38.2 crore from the public through the listing by selling 3.62 crore equity shares.
• The IPO will be listed on the BSE Startup board and is one of the largest listings on it.
• The public issue will start from September 6 and close on September 9.

Architecture and interior design software startup, Infurnia is all set to launch its initial public offering (IPO) starting September 6 to September 9.

The Bangalore-based startup is looking to raise ₹38.2 crore from the public by selling 3.62 crore equity shares. The IPO price is fixed at ₹10 per share.

The company will be listed on the BSE Startup board.

Infurnia was founded in 2014 and is a cloud-based platform that allows professionals to design buildings, interiors and modular kitchens. In the past, the startup has raised over ₹10 crore in various funding rounds from several angel investors and VC firm Idein Ventures. Its customers include brands such as Livspace, Spacewood and Wakefit.

Founders of the startup, Nikhil Kumar and Lovepreet Mann hold the largest share in the startup– at 30.63% and 20% stake respectively. Together, the promoter shareholding in the startup stands at 50.64%.

The startup aims to utilize IPO funds for expansion of its subsidiary, its team, entry into new market segments and acquire new customers. It will use ₹29.02 crore towards this subsidiary while ₹8.68 crore will be used for general corporate purposes.

It is worth mentioning that the startup’s financial performance has been on a declining trend as its losses increased in the last three financial years.

“We have incurred losses and negative cash flows from operating activity in the past and may continue to incur losses and negative cash flows in the future,” said the startup in its DRHP.

“We expect our operating expenses to increase in the future as we expand our operations. If the revenue does not grow at a higher rate than the expenses, we may not be able to achieve and maintain profitability,” it added.
Infurnia believes that the future of the design industry lies in cloud-based platforms.

“Taking advantage of improving web technologies and digital infrastructure, Infurnia brings all the benefits of a cloud-based platform to the design industry, at a disruptive price,” the company said.

The company says that its focus is to create an integrated and easy to access design platform for the architecture and interior design ecosystem.

SEE ALSO: HCL Tech beats Wipro to become India’s third largest IT company
Wipro, Tech Mahindra lead rout in IT stocks as recession risks loom