Kenya has the largest and most thriving furniture industry in East Africa, but the sector’s potential is hampered by several challenges, including production inefficiencies and quality concerns, leaving most major retailers have to rely on imports.
MoKo Home + Living, a Kenya-based home furnishings manufacturer and omnichannel retailer, has recognized this gap and set out to bridge it through quality and assurance for several years. The company is now eyeing its next phase of growth following his $6.5 million Series B Debt/Equity round jointly led by US-based investment fund Talanton and Swiss investor AlphaMundi Group.
Novastar Ventures and Blink CV, which co-led the company’s series A round, also made additional investments. Kenya’s Victoria Commercial Bank provided his $2 million debt financing and Talanton also provided his $1 million mezzanine financing. This debt can be turned into equity.
“We entered this market because we saw a real opportunity to guarantee and provide quality furniture. We also made it easy to purchase home furnishings, which are the greatest asset for most Kenyan families. We wanted to bring convenience to our customers by making it possible.
MoKo was founded in 2014. It was originally founded as Watervale Investment Limited, an organization that sought to solve the raw material supply problem for furniture manufacturers. However, in 2017 he changed direction and started piloting his first consumer product (mattress) and a year later launched his MoKo Home + Living brand to serve the mass market.
The startup says it has grown fivefold in the last three years and its products are now installed in more than 370,000 households in Kenya. We have embarked on expanding production and expanding our product line, hoping to sell to millions of homes in the next few years. Among its current offerings is his popular MoKo mattress.
“We plan to offer products for each major piece of furniture in a typical home, such as bed frames, TV stands, coffee tables, and carpets. We will also develop more affordable products in our existing product categories, such as sofas and mattresses. We do,” said Kooscaris.
digital first brand
MoKo also plans to use the funding to increase its growth and presence in Kenya by leveraging its online channels and building partnerships with retailers and outlets to increase offline sales. . We also plan to purchase additional equipment.
MoKo already uses digital technology in its production lines, investing in “equipment that can accurately execute complex woodworking designs programmed by our engineers in seconds.” This has allowed the team to work efficiently and improve productivity, they say. “Automated recycling technology and software that calculates the best use of raw materials” also helps reduce waste.
“We are impressed with MoKo’s local climate-friendly manufacturing capabilities. The company is an industry-leading innovator because they have turned sustainability into a remarkable commercial advantage. Every step taken not only protects the environment, but also improves the durability and affordability of the products MoKo offers to its customers,” said Miriam Atuya of AlphaMundi Group.
MoKo aims to enter three new markets by 2025 to reach a wider customer base as demand for furniture on the African continent continues to grow, driven by population growth, urbanization and increasing purchasing power. increase.
“Growth potential is what excites us most. Kenya still has a lot of room to better serve millions of families. Relevant for most markets, families face similar obstacles in creating a comfortable and welcoming home.”
