Accel Partners throws the kitchen sink at ecommerce in India

Just a few years back, most people scoffed at the idea of buying furniture online in India. Startups like Urban Ladder, PepperFry, and FabFurnish proved them wrong. Backed by millions in venture capital, these Indian furniture startups have been growing fast and strong. Now, there are newer players out to carve a niche within this niche, and large VC funds are seeding them. Bangalore-based CapriCoast is the latest example.

CapriCoast sells modular kitchens online. It just raised US$1.25 million in seed funding from Accel Partners.

A modular kitchen is made up of prefabricated cabinet parts which are fitted together to create a functional design. It is not as expensive as a custom-made kitchen, and most urban couples prefer it to the traditional kitchen designs. According to CapriCoast founder and CEO Jawad Ayaz, the modular furnishing market in India is worth US$10 billion. And it is largely “unorganized with minimal quality standardization, obfuscated pricing, and a tedious, high-friction purchase process.” The startup wants to change this by offering a wide product range, transparent pricing, and ease of buying.

“CapriCoast’s online model eliminates middlemen and brings in cost efficiencies that are passed on to the customer, making it possible for the price of a world class modular kitchen to be 20-25 percent lower than any other comparable offerings in the market,” Ayaz says. Its catalog has about 1,000 designs of kitchens and wardrobes in a wide price range. Customers can use its customization tools and avail free design consultations before placing an order.

Ayaz runs another furniture startup Zansaar, which is also funded by Accel Partners. “Zansaar and CapriCoast will use each other’s platforms to increase their collective user base,” according to a statement from the company.

Currently, CapriCoast operates only in Bangalore. The seed funding will be used to expand to other metropolitan cities of India by this year-end.

A growing number of urban professionals are looking for furniture options. Last month, Furlenco, a Bangalore-based startup that lets you rent furniture, raised US$6 million from Lightbox VC. Users can choose items they like or get their whole house furnished, on a monthly rent.