Kenyan furniture startup Moko secures Ksh.786m funding

Nairobi-based furniture startup Moko has secured a Ksh.786 million ($6.5 million) capital injection which will go towards expanding its local footprint.

The startup, founded in 2014, raised the capital after a second round of funding led by Swiss investor AlphaMundi Group and U.S.-based investment fund Talanton.

TechCrunch reports that Novastar Ventures, Blink CV and Victoria Commercial Bank also took part in the fundraising exercise.

The local lender provided Ksh.241.8 million ($2 million) debt financing while Talanton offered Ksh.120.9 million ($1 million) mezzanine financing — a debt that can be reverted into equity.

According to the firm, part of the cash will be allocated towards expanding partnerships with local retailers, purchasing more furniture stock as well as growing the firm's online presence.

Moko, which was initially known as Watervale Investment Limited before rebranding in 2017, primarily trades in home accessories such as beds, sofas and mattresses.

Before the relaunch, the firm offered solutions to furniture manufacturers in regard to sourcing raw materials.

“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 told news platform TechCrunch

Kouskalis likewise alluded to the company introducing new and affordable products targeting the country's middle class in the coming months.

“We plan to have an offering for each major piece of furniture in a typical home — bed frame, TV stand, coffee table, carpet. We are also developing even more affordable products in existing product categories — sofas and mattresses," he said.