Future group likely to shutter FabFurnish
BENGALURU: The Kishore Biyani-led Future group is likely to shut FabFurnish, an online furniture store, which it had acquired from Germany's Rocket Internet last year, sources familiar with the matter said.
A year ago, the Samwer brothers, founders of Rocket Internet, sold the furniture e-tailer to Future group for Rs 15-20 crore in a distress sale. Biyani already runs a home and furnishing business under the brand of HomeTown. Biyani wanted to leverage the online capabilities of FabFurnish to market the brand HomeTown, sources said. "The acquisition did not work out for them so they are going to keep just one brand -HomeTown," a source said.
People in the know said Biyani does not want to continue investing in two brands especially when FabFurnish has not performed as expected. "While they are shutting FabFurnish, they also have plans to invest further in HomeTown to scale up that business," the person quoted above added.
An email sent by TOI to a Future group spokesperson did not elicit a response.
Biyani has been one of the strongest voices criticising most of the venture capital funded internet-based startups in India, raising questions on discount-led business models. The decision to shutter FabFurnish will result in job losses. About 50 per cent of the workforce of FabFurnish has been laid off, while others are being adjusted within the Future group.At the time of the acquisition, about 100 people from FabFurnish had joined the firm.
A year ago, the Samwer brothers, founders of Rocket Internet, sold the furniture e-tailer to Future group for Rs 15-20 crore in a distress sale. Biyani already runs a home and furnishing business under the brand of HomeTown. Biyani wanted to leverage the online capabilities of FabFurnish to market the brand HomeTown, sources said. "The acquisition did not work out for them so they are going to keep just one brand -HomeTown," a source said.
People in the know said Biyani does not want to continue investing in two brands especially when FabFurnish has not performed as expected. "While they are shutting FabFurnish, they also have plans to invest further in HomeTown to scale up that business," the person quoted above added.
An email sent by TOI to a Future group spokesperson did not elicit a response.
Biyani has been one of the strongest voices criticising most of the venture capital funded internet-based startups in India, raising questions on discount-led business models. The decision to shutter FabFurnish will result in job losses. About 50 per cent of the workforce of FabFurnish has been laid off, while others are being adjusted within the Future group.At the time of the acquisition, about 100 people from FabFurnish had joined the firm.
