Moko Home + Living, a Kenyan furniture company has raised $6.5 million to grow its business line.
The Serie B debt-financing round was led by Swiss investor AlphaMundi Group and U.S.-based investment fund Talanton. Others that participated were Novastar Ventures, Blink CV as well as debt financing from Kenya’s Victoria Commercial Bank, which offered $2 million and $1 million mezzanine financing from Talanton, a debt that can be turned into equity.
“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,” Moko’s managing director and co-founder Eric Kouskalis.
Founded in 2014, the firm was initially called Watervale Investment Limited which focused on addressing raw material supply chain problems for furniture makers. In 2017, it shifted its core business to mattresses before venturing fully into Moko Home, selling furniture products. The company, which has sold 370,000 products so far, said its business has grown five-fold in the last three years and is planning to use the fund to grow its presence in Kenya using its digital platforms as well as build partnerships with retailers and outlets to increase offline sales.
MoKo’s investment partner, AlphaMundi in a statement expressed satisfaction with the company’s objective of driving a sustainable production of suitable and affordable furniture that is ecofriendly.
“We were impressed by MoKo’s climate-friendly local production capabilities. The company is a leading innovator in the industry because they’ve turned sustainability into a remarkable commercial advantage. Every step they’ve taken on this front not only protects the environment, it also improves the durability or affordability of MoKo’s offering to its customers,” Miriam Atuya of the AlphaMundi Group.