Indonesian home decor platform Dekoruma claims to have achieved breakeven in the July-September quarter (Q3) even as it targets to hit breakeven for the full year in 2024, a top executive told reporters on Tuesday.
Dekoruma CEO and co-founder Dimas Harry Priawan said the company is operating sustainably, which means it has not burned a lot of cash on marketing expenses and is focusing on generating revenue organically. “Regardless of macroeconomic conditions, we are operating well. In the third quarter, we have not burned a lot and hopefully can continue the same next year,” he said.
Buoyed by the performance indicators, the company is hopeful of tapping the capital market to raise funds. “After discussions with investment bankers, [we think] the IPO environment next year [on account of Presidential elections] is not very conducive, so we need to wait and see until the market is at an advantage,” he said.
The size and the venue of the IPO are undecided. The firm is hoping to use the IPO proceeds to support its expansion in tier 1 and 2 cities.
“We are expanding our offline stores to tier 1 and tier 2 cities. This year, we opened 8 new stores and plan to add 8-10 new stores more next year,” Priawan said.
In Nov last year, DealStreetAsia reported that Dekoruma completed a “tens of millions of dollars” financing round, led by a fund owned by local conglomerate Djarum Group, GDP Ventures. Dekoruma’s existing investors, including Ondine Capital, OCBC, and Nexter Ventures, the investment arm of Thailand’s SCG Cement-Building Materials, also participated in the round.
According to DealStreetAsia-DATA VANTAGE, Dekoruma last raised $13.4 million in 2022, which brought its total funding to $22.32 million. The valuation of the company is $81.32 million. It booked $10.57 million of revenue and $3.38 million of losses in 2021.
Established in 2016, Dekoruma is a furniture marketplace that connects consumers with home furnishing merchants, interior designers, contractors, and property developers.
According to its website, the company has served over one million customers, partnering with over 5,000 designers and contractors. It offers over 100,000 products and has completed more than 3,000 interior design projects with 100 designer partners. Dekoruma also partners with more than 100 property developers and banks.
Indonesia’s furniture market is expected to increase by $3.29 billion between 2021 and 2026, according to a study by market research firm Technavio. Besides Dekoruma, the fragmented market has other online furniture e-commerce platforms including Ruparupa (Ace Hardware and Informa), Ikea Online, and Vivere.
Another VC-backed startup Fabelio was declared bankrupt in October and it stopped operations in July 2022.