Kenya has the largest and most prosperous furniture industry in East Africa, but the industry’s potential is limited by several problems, including production inefficiencies and quality issues that have forced most major retailers to opt for imports.
MoKo Home + Living, a furniture manufacturer and multi-channel retailer based in Kenya, saw this gap and set out to fill it with quality and warranty in a few years. The company is now eyeing the next round of growth after a $6.5 million Series B debt financing round co-led by U.S. investment fund Talanton and Swiss investor AlphaMundi Group.
Novastar Ventures and Blink CV jointly led the company’s Series A round with further investments. Kenyan commercial bank Victorian provided $2 million in debt financing, and Talanton also provided $1 million in mezzanine financing, debt that can be converted into equity.
“We entered this market because we saw a real opportunity to guarantee and provide quality furniture. We also wanted to provide convenience for our customers so that they can easily buy home furniture, which is the biggest asset for most households in Kenya,” Director Ob This was reported to TechCrunch by MoKo general manager Eric Kuskalis, who co-founded the startup with Fiorenzo Conte.
MoKo was established in 2014 as Watervale Investment Limited, dealing with the supply of raw materials for furniture manufacturers. However, in 2017 the company changed direction and piloted its first consumer product (a mattress), and a year later launched the MoKo Home + Living brand to serve the mass market.
The startup says it has grown five-fold in the past three years, with its products now being used in more than 370,000 homes in Kenya. The company hopes to sell it to millions of households over the next few years as it begins to expand its production and product line. Its current products include the popular MoKo mattress.
“We plan to offer products for all the main pieces of furniture in a typical home – bed frames, TV cabinets, coffee tables, rugs. We are also developing more affordable products in existing product categories – sofas and mattresses,” Kuskalis says.
MoKo also plans to use the funds to increase its growth and presence in Kenya by leveraging its online channels, expanding partnerships with retailers and outlets to boost offline sales. He also plans to purchase additional equipment.
MoKo already uses digital technology in its production line and has invested in “equipment that can take complex woodworking projects written by our engineers and complete them accurately in seconds.” They say it helps teams work efficiently and increase production. “Automated recycling technology and software that calculates the best use of raw materials” also helped them reduce waste.
“We are very impressed with MoKo’s sustainable local manufacturing capabilities. The company is a leading innovator in the industry as they have turned sustainability into a significant commercial advantage. Every step they take in this area not only protects the environment, but also improves the durability or availability of products that MoKo offers to customers,” said Miriam Atuya of AlphaMundi Group.
MoKo aims to expand into three new markets by 2025 driven by population growth, urbanization and increased purchasing power as demand for furniture continues to grow across the continent and reach a broad customer base.
“Growth potential is what we are most excited about. There is still plenty of room in Kenya to better serve millions of households. This is just the beginning – the MoKo model is relevant to most markets in Africa, where families face similar barriers to building comfortable, welcoming houses,” Kuskalis said.
Post time: Oct-17-2022