Burrow , a modular soaf startup, the kind that reminds us of IKEA in that it is offering comfortable and convenient furniture, has raised $14 million in series A. The round was led by New Enterprise Associates (NEA) with Correlation Ventures also participating in the round, and investors already associated with the startup, Red & Blue Ventures and Y Combinator Continuity. The startup was part of the YC accelerator in 2016.
According to leading startup news media sites, Burrow had raised $4.3 million in a seed round at the end of 2017. At this point Burrow had said business was growing monthly at a rate of 20 percent with manufacturing facilities relocating from Mexico City to Mississippi.
One of Burrow’s cofounders, Stephen Kuhl has reportedly said on the back of what was a promising 2017, Kabeer Chopra, another cofounder of Burrow and he, had made the decision to go back to fundraising by end of January 2018. Their aim had been to get on board NEA’s Tony Florence, the investor behind Casper (an ecommerce startup selling mattresses) and Jet.com (an ecommerce company). The founders have succeeded in getting Florence to join Burrow as a board director.
“Direct-to-consumer commerce is an increasingly important category, particularly in verticals that have seen little innovation in the way products are built, marketed and distributed,” Florence said in an emailed statement, reprts TechCrunch. “The furniture market is ripe for disruption, and Burrow can deliver the quality, value, and convenience that consumers demand from ecommerce shopping experiences. We’re excited to partner with Stephen and his team as they tackle this tremendous opportunity.”
Their offerings now include ottomans, chaise sectional couches and the option of having your furniture come in wooden legs but Burrow’s primary product is a modular design sofa, making it easy to move and adjust to living spaces of different shapes and sizes. The sofas come in seat configurations of one to four, with a three sear sofa costing $1,095. The product is compact and comes in manageable packing with assembly of the sofa reportedly taking about ten minutes and can be done without the assistance of tools.
Kuhl has reportedly told TechCrunch, the fresh round of funding will go to getting more talent, more manufacturing facilities and more products. Burrow also reportedly intends to become “an entire home lifestyle brand.”