Interior design-tech venture Flipspaces recently announced that it has achieved profitability at an overall EBITDA level. This achievement marks a significant milestone for the company, which is focused on becoming a global one-stop-shop for commercial design and build. It is one of the first ventures in the funded new-age startups category, focused on tech-enabled interior design, to achieve profitability.
Throughout the pandemic years, Flipspaces has experienced substantial revenue growth, which has been further accelerated by the return-to-work trend over the last year. The growth is expected to continue, as reflected in the audited numbers and the projections for FY24. The venture boasts a CAGR of 63% over the last three years in India, alongside a remarkable 300% CAGR in the US during the same period. This has resulted in an overall business CAGR of 83%.
Kunal Sharma, the Founder, and CEO of Flipspaces, stated, “Post our last fundraise, we focused on driving efficiency at every level to achieve the milestone of becoming profitable at an overall EBITDA level while maintaining a high growth trajectory. Achieving this milestone has been possible due to economies of scale, tech-driven expansion of margin profile, and the operating leverage from our presence in India and the USA.”
“In this fiscal year, we have grown our business by approximately 2X in both India and the US, alongside achieving profitability. This accomplishment stems from fostering a leadership culture that truly believes in and celebrates profitability and sustenance,” Kunal added.
Ankur Muchhal, Co-Founder and COO of Flipspaces, highlighted the company’s unique position, “Flipspaces is the only venture in its category with an active base in the US, boasting a fully operational presence and an office in NYC. We have also achieved EBITDA profitability in the US and aim to continue our growth trajectory.”
The company reported that the US has seen an approximate growth of 2X YoY for the last four years, with the US’s contribution to total revenue growing from 8.59% to 23.68% for the venture during the same period. This growth has also positively impacted the blended margin of the business, as operations in the US have a better margin profile.
Vikash Anand, Co-Founder and Partner at Flipspaces, remarked, “Our profitable scale has been supported by our ability to secure large-size mandates with legacy MNCs and corporates. Although we typically cater to the massive SME category in India and the USA for Commercial Design and Build Mandates, we are increasingly winning large and super-large mandates thanks to our expansive body of work and tech differentiation.”
Kunal Sharma shared his vision for the future, “With the happy challenge of having more business than we can handle, we are preparing for the next level of scale. Our profitability and cash-generating capabilities provide us with an infinite runway to continue building scale with capital efficiency and become a category-defining business in the massive USD 250 billion category across India and the US.”
Flipspaces is supported by Carpediem Capital, a growth-stage PE fund, a consortium of investors led by Prashasta Seth (former CEO of IIFL AMC), and several other family groups, marking its significant achievement in the competitive landscape of interior design-tech ventures.
