STARTUP-STORIES

Interior Design-Tech Venture Flipspaces Achieves Profitability at EBITDA Level with 2X YoY Growth in India & US this Fiscal

SUMMARY

Flipspaces, a design-tech company focused on commercial spaces, achieved profitability at an overall EBITDA level. They witnessed strong revenue growth, with India growing at a 63% CAGR and the US at a staggering 300% CAGR over the last 3 years.

Flipspaces is expanding globally and is already profitable in the US. They are also attracting large clients with their fast execution times, recently completing a 1 lakh square foot office space in just 100 days. With a focus on scalability and efficiency, Flipspaces is positioned for continued growth in the $250 billion commercial design-tech market.

Bengaluru, India: Flipspaces, a leading interior design-tech venture, has reached a significant milestone by achieving profitability at an overall EBITDA level. This accomplishment marks a major step forward for the company's mission to become a global one-stop-shop for commercial design and build solutions.

Strong Revenue Growth and Profitability

Flipspaces has demonstrated impressive financial performance. Despite the pandemic's challenges, the company has witnessed consistent revenue growth. This growth has accelerated further in the past year due to the "go-back-to-work" trend.

The company's audited financials and projections for FY24 reflect this positive trajectory. Notably, India has seen a Compound Annual Growth Rate (CAGR) of 63% over the past three years, while the US market has witnessed a phenomenal 300% CAGR during the same period. This combined growth translates to an overall business CAGR of 83%.

Focus on Growth and Profitability

Kunal Sharma, Founder and CEO of Flipspaces, emphasizes the company's balanced approach to growth and profitability. "Achieving profitability while maintaining high growth was a key objective after our last fundraising round," he states. He attributes this milestone to economies of scale, technology-driven margin improvement, and the operational leverage gained through their presence in both India and the US.

Double-Digit Growth in India and US

Flipspaces has achieved profitability alongside impressive growth in both India and the US during the current fiscal year. Sharma highlights the significance of fostering a leadership culture that values profitability and long-term sustainability.

US Market Expansion and Contribution

Ankur Muchhal, Co-Founder and COO of Flipspaces, points out the company's unique position in the market. "Flipspaces is the only venture in this category with a fully operational presence and office in the US," he states. This commitment to the US market is reflected in their achievement of EBITDA profitability in the region. The US market has consistently grown by approximately 2X YoY over the past four years, and its contribution to Flipspaces' total revenue has risen from 8.59% to 23.68%. This geographic diversification also benefits the company's overall margin profile due to the US market's higher margins.

Securing Large-Scale Projects

Vikash Anand, Co-Founder and Partner at Flipspaces, emphasizes their ability to secure large-scale design and build mandates with established multinational corporations (MNCs) and other big businesses. While Flipspaces caters to the vast small and medium enterprise (SME) market (approximately 65 million businesses across India and the US), their growing portfolio and technological edge have positioned them to win large and super-large projects.

Benchmark Speed of Execution

A recent accomplishment includes the successful execution of a 1 lakh square foot office space for a prominent BFSI (banking, financial services, and insurance) company within 100 days. This rapid turnaround time showcases Flipspaces' operational efficiency and serves as a competitive advantage.

Future Outlook: Scaling Up and Category Leadership

Flipspaces is currently experiencing high demand for its services. The company is actively preparing for the next level of growth. Kunal Sharma concludes, "Profitability allows us to scale efficiently and pursue our vision of becoming a category leader in the massive $250 billion commercial design-tech market across India and the US."

Investor Backing

Flipspaces is backed by Carpediem Capital, a growth-stage private equity fund, a consortium led by Prashasta Seth (former CEO of IIFL AMC), and several family groups.

Flipspaces' achievement of profitability and its commitment to global expansion solidify its position as a frontrunner in the commercial design-tech space.