In Successful Series C, Startup Furniture Business Burrow Brings in $25 Million From Investors

By James White Tuesday, March 2, 2021

Buying furniture has never been easier for the consumer. Many startup companies and businesses offer furnishings from beds to desks and dressers — all through an online medium. Shoppers do not even need to leave their homes to find and purchase all kinds of furniture for their homes. Reaping the benefits of this trend is ecommerce startup business Burrow which recently garnered another $25 million from investors in a Series C funding round for the online furniture company, bringing the total funding for the business to $55 million.

The latest funding round was led by Parkway Venture Capital, with participation from NEA, Red & Blue Ventures, Winklevoss Capital, and Y Combinator’s Michael Seibel. Managing Partner at Parkway Venture Capital, Greg Hill, will be joining the board of directors at the startup company.

A living room with a modular sofa and coffee table.

Modular Sofas and Beyond

The New York-based startup ecommerce business was co-founded by entrepreneurs Stephen Kuhl and Kabeer Chopra in 2016, who were frustrated with the hassle of buying and transporting couches from traditional retailers like IKEA. By 2017, the company officially launched, offering a direct-to-consumer, or D2C, method of buying sofas, which would later expand to a broad array of home furnishings, including shelves, tables, benches, and more.

Though the startup business now offers a wide range of goods, its claim to fame was originally its modular couch, designed to be fully customizable as well as easy to move and ship. The company prides itself on using high-quality, sustainably sourced material for its products.

“We reverse-engineered a high-quality couch to ship in compact boxes that fit within the FedEx and UPS commercial weight guidelines,” Kulh said. “Instead of having a couch that costs several hundred dollars to ship from the factory to the warehouse to the retail store to the customer.”

Burrow’s Business Is Booming

Burrow claims to have seen “triple-digit” revenue growth in 2020, likely aided in part by the COVID-19 pandemic as consumers were pushed toward ecommerce marketplaces while social distancing. The startup company will be using the proceeds from the latest funding round to further expand its catalogue of products and improve its supply chain.

“Over the last 18 months, we launched innovative new products in every category of living room furniture,” Kulh said. “In 2021, we’ll continue that expansion into every room of the home.”

Other companies, including Albany Park and Fyrn, are tapping into the D2C furniture market and may become Burrow’s competitors in the future. Other brands offer their products through ecommerce giants like Amazon. The US home furniture market is expected to grow by $8.08 billion from 2020 to 2024, according to a report from Research and Markets.

About the Author

Headshot of James White

James White is a Michigan State University graduate with a BS in Environmental Biology. He is interested in reporting emerging trends in technology, especially with regard to alternative energy and environmental conservation.

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