Kishore Biyani-led Future Group plans to acquire online furniture store, FabFurnish.com, reported Mint. The Group may pay anywhere between Rs 15 and Rs 20 crore in cash and will be largely doing so for the brand FabFurnish, the report adds.
"FabFurnish's business is not profit-making, but we are buying it for the front-end," Kishore Biyani, Chief Executive Officer, Future Group told CNBC-TV18. However, the net valuation would be much lower as the online furnishing firm has close to Rs 10-15 crore in the bank. Future Group will retain FabFurnish‘s brand name and will be using this platform to sell products from its home and furnishing business brand HomeTown. He added, "We are creating the largest home furnishings company in the country."
“FabFurnish‘s management team and about 100 employees are likely to join the Future Group. We will leverage FabFurnish‘s online platform and delivery model to grow our presence in markets where we do not have offline stores or have minimal reach,” Kishore Biyani, CEO of Future Group, told Mint.
Gurgaon-based firm FabFurnish was founded in 2012 by Mehul Agrawal, Vikram Chopra and Vaibhav Aggrawal. The company has, so far, raised over $30 million from Rocket Internet and Kinnevik. Last July, its founders Agrawal and Chopra put in their papers to start their own venture. As a result, FabFurnish appointed senior directors Ashish Garg and Ankita Dabas to take over the management role.