Moko Home + Living, a Kenyan furniture startup, is reaching high for continuous growth and development, taking advantage of Kenya's thriving furniture industry. The company has just raised a $6.5 million Series B debt-equity funding round for expansion in the Kenyan market.
Moko plans to utilize the money from the deal to enhance its offline sales and purchase more equipment in addition to its primary goal of expanding in the Kenyan market.
This funding round was co-led by U.S.-based investment fund Talanton and Swiss investor AlphaMundi Group. Novastar Ventures, which co-led the firm’s Series A round, and Blink CV also made follow-on investments.
Kenya’s Victoria Commercial Bank offered $2 million in debt financing, as Talanton also extended $1 million in mezzanine financing—debt that can be turned into equity.
Read also: In Kenya, Tushop secures $3 million in pre-seed funding
According to co-founder Eric Kouskalis, "We entered this market because we saw a real opportunity to guarantee and deliver quality furniture. We also wanted to bring convenience to customers by making it easy for them to buy home furniture, the largest asset for most families in Kenya. We also wanted to add convenience to clients by making it simple for them to acquire house furniture, the biggest asset for most families in Kenya".
"The potential for growth is what excites us the most. There’s still so much room to better serve millions of families in Kenya. That’s just the beginning — MoKo’s model is relevant for most markets in Africa, where families face similar obstacles in making comfortable, welcoming homes," he added.
The company plans for more expansion and development in the near future
MoKo has invested in equipment that can handle intricate woodworking designs programmed by the engineers and execute them accurately in seconds, demonstrating the use of digital technology in the company's assembly lines, which is claimed to have contributed to the group's increased efficiency and output. Additionally, by utilizing the automatic recycling equipment and algorithms that assess the best usage of basic resources, the company has been able to lower the rate of waste.
Miriam Atuya of the AlphaMundi Group said, "We were quite pleased with MoKo's ability to produce locally in a way that doesn't negatively impact the environment. The company is a leading innovator in the industry because they’ve turned sustainability into a remarkable commercial advantage. Every step they've made on this front not only preserves the environment but also increases the durability or affordability of MoKo's products to clients".
MoKo plans to expand into three new markets by 2025 to meet the rising demand for furniture throughout the continent, fueled by rising populations, higher incomes, and more populated cities.
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About MoKo
MoKo was created in 2014 by Eric Kouskalis and Fiorenzo Conte as Watervale Investment Limited, an organization aimed to fix raw material supply issues for furniture producers. However, in 2017, it transitioned and initiated a trial for its first consumer product (a mattress), and after one year, the MoKo Home + Living brand was launched to serve the mass market.
The firm, which partners with LipaLater and FlexPay, has expanded fivefold in the past three years, and its products are now in more than 370,000 Kenyan households. It aims to sell to millions of households over the next three years as it ramps up manufacturing and expands its product portfolio. Among its current offerings is the well-known MoKo mattress.
