25 August 2016, India :
Bangalore-based Online furniture store Urban Ladder has secured $3 million in venture debt from Trifecta Capital.
“Debt capital makes sense given the cost of capital is lower. Every time you raise equity, you dilute stake and you can’t recoup that ever. Debt is far cheaper. Only thing about debt is, you have to be confident of your repayment ability. It will give the company an additional runway of three to four months. Now, will that additional runway of four months help the company grow the business by an additional 30%? If that additional growth helps improve your valuation and avoid dilution of stake, that is a good enough value you have generated,” said one person aware of the development, on the condition of anonymity.
Urban Ladder offers a unique selection of stylish, contemporary, and chic furniture online. The online furniture range includes sofas, beds, dining tables, TV units, wardrobes, dressing tables, and lots more. You can browse as many furniture designs across categories as you like, sort and filter, compare options, easily select and buy the ones you like, and stay updated about new and contemporary designs on their portal.
Urban Ladder is one of the most well-capitalized online furniture businesses, backed by TR Capital, Sequoia Capital, Steadview Capital, SAIF Partners and Kalaari Capital. It has raised close to $76 million to date. Pepperfry, which is operated by TrendSutra Platform Services Pvt. Ltd, has so far raised $128 million and is the most funded player in the space.
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