Home Furnishings
Affordable
Season 3 Episode 17
| Brand | Urban Space |
| Company Name | Urban Space Ventures Private Limited |
| Founders | Rohit Agarwal, Radhika Agarwal |
| Original Ask | 1.8 crores for 1% equity at the valuation of Rs. 180 crores |
| Deal | No Deal |
About the Product
Urban Space offers 100% authentic products, ensuring that customers receive exactly what they read and see. Their commitment to authenticity is unwavering. Their soul lies in great design, with a range of home decor products featuring the most beloved designs. From bedsheets to cotton curtains, rugs to carpets, pillow covers to comforters, mattress protectors to blankets, and cushions, their diverse product lineup enhances the feeling of home with beautiful designs that are both affordable and comforting.
Urban Space’s products are meticulously curated to cater to various needs, with a wide range of SKUs tailored for different uses. These products are available on their website as well as prominent online marketplaces, ensuring easy accessibility to customers seeking quality home decor items.
Founders & their story
- Rohit Agarwal
- Radhika Agarwal
Urban Space is a distinguished provider of premium home textiles, including bedsheets, curtains, table linens, carpets, and more. With an extensive portfolio of over 1200 SKUs, each meticulously crafted with superior quality fabrics, they cater to the discerning tastes of their customers. Founded by the dynamic duo, Rohit and Radhika, who bring a wealth of experience from the textile industry, Urban Space is more than just a brand; it’s a manifestation of their passion for creating beautiful and safe living spaces. Their mission is to inspire and empower individuals to transform their homes into havens of comfort and style, without breaking the bank.
Their product range is carefully curated to meet the diverse needs of modern homeowners. Currently, curtains account for 45% of their sales, followed by bedsheets at 25%, with other products comprising the remaining 30%. Whether it’s dressing up windows with elegant drapery or adorning beds with luxurious linens, Urban Space offers unparalleled quality and affordability. They operate through multiple channels, including their own website and various online marketplaces, ensuring accessibility to customers worldwide. Their e-commerce marketing expenditure, amounting to 6-7% of sales, is strategically allocated to maximize reach and engagement.
With an average rating of 4.5 stars and an impressive Net Promoter Score of 89, they pride themselves on delivering exceptional customer experiences. Their repeat purchase rate stands at 31% on their website and 25% on online marketplaces, a testament to the loyalty and satisfaction of their clientele. Looking ahead, Urban Space is poised for further growth and innovation. They are committed to expanding into adjacent categories and products, leveraging their expertise and insights to meet evolving consumer demands. Additionally, they recognize the importance of branding and are dedicated to enhancing their brand presence and identity in the market.
Central to their future plans is the investment in building a robust and talented team, fostering a culture of creativity, collaboration, and excellence. Through these strategic initiatives, Urban Space aims to consolidate its position as a leading provider of premium home textiles, enriching lives one beautifully furnished space at a time.
About the company
Established in 1980 and headquartered in Ahmedabad, India’s textile hub, the founders bring over 35 years of expertise in fabric manufacturing. Experience is paramount, especially in industries as fundamental as textiles, where they have honed their craft to achieve exceptional accuracy and efficiency in production. Their unwavering commitment to quality and transparency has positioned them strongly in the competitive market landscape.
With in-house capabilities for design, manufacturing, and packaging, they offer unparalleled flexibility to cater to diverse client needs. Whether it’s fabric specifications, colour variations, bespoke designs, packaging solutions, or pricing considerations, they possess the expertise and resources to address every requirement. At Urban Space, their mission revolves around delivering superior quality and distinctive pieces to elevate and rejuvenate living spaces, ensuring instant appeal and lasting satisfaction. Their relentless pursuit of excellence extends beyond product offerings to encompass holistic customer experiences and the continual enhancement of living environments. Urban Space stands as a prominent home decor brand renowned for its comprehensive range of furnishing products, spanning bed sheets, curtains, linens, blankets, mats, and more, all aimed at enriching homes with style and comfort.
Revenue
Annualized revenue run rate for Urban Space stands at 45 crores. Monthly sales figures for October 2023 amount to 8 crores, September 2023 to 3.65 crores, and August 2023 to 4.15 crores. Cumulative sales for FY 23-24 until October total 29 crores, compared to 20.5 crores for FY 22-23. Projected sales for FY 23-24 are expected to reach 40 crores. The net margin for FY 23-24 is projected to be 25%, while for September 2023, it was 27%.
Founders’ Ask
1.8 crores for 1% equity at the valuation of Rs. 180 crores.
Offers:
Amit’s conditional offer: 1.8 crores for 2% equity at the valuation of Rs. 90 croresand 5% royalty until 2.7 crores is recouped. (Condition being – merge with the other business)
Anupam’s conditional offer: 1.8 crores for 2% equity at the valuation of Rs. 90 croresand 3% royalty until 3.6 crores is recouped. (Condition being – merge with the other business)
Founder’s Counteroffer:
1.8 lakhs for 1.25% equity at the valuation of Rs. 144 crores.
No Deal
Reasons for no deal
Expectations of the valuation and royalty did not match.