With the demand for pre-owned and vintage furnishings soaring in part due to supply chain disruptions that have delayed the delivery of new products, used furnishings retailers have experienced significant growth over the past two years. And one of those outlets, Kaiyo, plans to grow even more now that it secured $36 million in Series B funding.
Kaiyo, which started out as furniture rental outfit Furnishare, earned the $36 million in equity and debt financing from Equity Partners, bringing its total fundraising to nearly $50 million after securing $5 million in Series A funding.
The investments come on the heels of 100 percent year-over-year growth in 2021, and founder and CEO Alpay Koralturk says the additional funding will allow the company to scale and reach new markets.
“This funding will allow us to further our mission of making great furniture accessible to everyone and better for the planet by allowing us to expand to new markets within the U.S., starting with California,” he said. “We will also further invest in our existing markets which are the New York, Philadelphia, Baltimore, and Washington, D.C., metro areas.”
Kaiyo offers furnishings from brands like Restoration Hardware, West Elm, and Room & Board, with white-glove delivery available within days in its markets. The company sources its inventory via consumers who sell gently used pieces with the option to get an instant payout or a portion of the revenue through consignment. Kaiyo also sources from a handful of furniture partners who provide return and overstock pieces for the platform.
Related Stories
“Our goal is to keep as much furniture out of landfills and in people’s homes as possible,” Koralturk said. “Our own proprietary algorithm looks at each item’s brand, condition, alongside other market factors to determine if an item is well-suited for our marketplace and likely to sell. Since launch, we’ve kept nearly three million pounds of furniture out of landfills.”
Koralturk said the company’s pre-owned model allows it to sidestep supply chain issues since they don’t work with manufacturers and stock all inventory in their own warehouse. And those delays have made Kaiyo’s business model a lot more attractive to many consumers who are unwilling to wait.
“These supply chain issues have made people more willing to try pre-owned furniture, and has helped increase participation in the circular economy,” Koralturk said. “Buyers are able to shop some of the industry’s top brands such as Restoration Hardware, West Elm, and more at up to 90 percent off retail and they receive their order in a matter of days.”
And while growing the business is certainly a priority for Koralturk, he hopes this funding will allow Kaiyo to make a greater positive impact on the environment and allow the company to serve as a model to others who are interested in circularity.
“We hope that in making it super-convenient to buy and sell furniture with Kaiyo, we’ll open more consumers up to the idea of secondhand and increase participation in the circular economy,” he said. “We see firsthand that consumers are moving toward more durable and sustainable furniture purchases every day, and we believe this will encourage more companies to consider their impact.”