Cloud-based Architecture Company Infurnia Holdings files DRHP for INR 38 Cr IPO

Infurnia Architecture Design Software

Cloud-based architecture design software startup Infurnia Holdings has submitted a Draft Acquisition Prospectus (DRHP) to the Securities and Exchange Commission of India (SEBI) to raise INR 38.2 Cr through an initial public offering (IPO).

In January of this year, Infurnia announced that it was planning an IPO on the BSE Startups platform. Infurnia will invest INR 29.02 Cr in the wholly owned subsidiary and INR 8.68 Cr will be used for general corporate purposes. 

The startup will use the money raised through the IPO to expand the business of its 100% owned subsidiary; to develop, upgrade and maintain its cloud-based software; and for other general corporate purposes.

In DRHP, the company said, “Our company believes that listing will give more visibility and enhance our company’s corporate image, brand name and create a public market for its equity shares in India. It will also make future financing easier and affordable in case of expansion or diversification of the business.”

Founded in 2014 by Kumar and Mann, Infurnia owns, develops and operates a cloud-based platform that allows professionals to design modular buildings, interiors and kitchens. The startup has so far raised more than INR 10 Cr in several rounds of equity funding from various investors and legal entities.

Infurnia’s consolidated net loss increased to INR 2.77 for the year ended March 31, 2022, from INR 2.65 the previous year. Operating income also fell to INR 13.6 Lac in FY 22 from INR 26.33 Lac in FY 21. Falling sales hit net income despite Infurnia’s cost-reduction measures. Its total spending fell 1.5% to INR 2.58 Bn in fiscal year 22 from INR 2.62 Bn in the previous year.

The startup reduced its welfare costs in Fiscal Year 22 to INR 1.68 billion from INR 2.24 billion in FY 21, largely supported by a reduction in ESOP costs. While the startup expects operating costs to increase in the future as it expands, DRHP notes that while revenue is not growing at a faster rate than costs, it can be difficult to achieve and maintain profitability.

Talking about risk factors, Infurnia also said that it is possible to suffer significant losses in the near future due to many different causes.

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