Business Today - - THE BUZZ - By Goutam Das

1) The Founder Neerav Jain

2) The Idea The ren­tal econ­omy is nearly main­stream and Jain, whose fam­ily is into fur­ni­ture ex­ports, de­cided to start a fur­ni­ture and con­sumer durables ren­tal busi­ness. Ini­tially, the idea was to be an ag­gre­ga­tor of small ren­tal firms, but that model suf­fered due to qual­ity and de­liv­ery is­sues. So, Jain lever­aged his fam­ily’s man­u­fac­tur­ing ex­per­tise to start a full-stack model – it de­signs, man­u­fac­tures, runs its ful­fil­ment cen­tres and does the de­liv­ery when cus­tomers place or­ders for fur­ni­ture ren­tal via its web­site. For con­sumer durables, it part­ners with brands such as LG, Sam­sung and Whirlpool.

3) Back­ers Ci­tyFur­nish has raised $1.2 mil­lion from Brand Cap­i­tal and a cou­ple of an­gel in­vestors, in­clud­ing Ji­ten­dra Gupta, Co-founder of Citrus Pay and MD of PayU In­dia, and Manoj Gupta, Direc­tor of Credit Suisse.

4) Growth, Com­pe­ti­tion The com­pany started with fur­ni­ture for both res­i­den­tial and com­mer­cial use. Later on, it added home ap­pli­ances and fit­ness equip­ment. In the B2B space, its cus­tomers in­clude Lemon Tree Ho­tels, Pizza Hut and Republic of Chicken be­sides co-work­ing space providers. Jain says his com­pany has been net prof­itable over the past two years and ex­pects to triple its top line to ` 21-22 crore in the cur­rent fis­cal. He thinks it is achiev­able due to its fo­cus on B2B that of­fers higher mar­gins and lower re­fur­bish­ment costs as the com­pany uses Shee­sham wood for its fur­ni­ture. Its key com­peti­tors in­clude Fur­lenco, Rentickle, Ren­toMojo and Fabrento.

5) What Makes It Dif­fer­ent Its de­sign phi­los­o­phy and the value-add phi­los­o­phy. It caters to the aspirational seg­ment, aged be­tween 24 and 37. The fur­ni­ture is made of Shee­sham wood while other ren­tal com­pa­nies mostly pro­vide the cheaper medium den­sity fi­bre­board (MDF)-based units. Next comes turn­around time – the com­pany prom­ises to de­liver within three days of plac­ing an or­der. Af­ter six months, a user can up­grade to new fur­ni­ture with­out any ad­di­tional cost. Ci­tyFur­nish launches new ranges of fur­ni­ture ev­ery quar­ter. Third, it of­fers free re­lo­ca­tion when a cus­tomer shifts to a city where it op­er­ates, namely, NCR, Mum­bai, Ben­galuru and Pune.

Ci­tyFur­nish Founder Neerav Jain

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.