On May 21, augmented reality (AR) interior design startup Modsy announced that it raised $37 million in Series C funding. Founded in 2015, the San Francisco-based firm has now raised $71 million in outside financing. Its explosive growth prompted the company’s latest cash injection. Moreover, in 2018, it grew its customer base by 450 percent.
With its newly secured capital and oversight from a high profile investment firm, Modsy’s future is incredibly bright.
Modsy’s Innovative Services
Admittedly, Modsy did not invent the concept of using AR tools in the interior design space. Firms like roOomy and Sayduck beat the startup to the market by five and three years, respectively. However, the newer company has found greater success than its competitors because of its innovative and high-quality services.
With Modsy, users submit photos and dimensions of the space they wish to revamp. Using that information, the company will create a three-dimensional model of the shopper’s room. Then, clients take a style quiz to help the firm understand their aesthetic preferences.
Subsequently, Modsy’s expert interior designers provide users with 3D design plans. At that point, customers can use the firm’s digital editor to revise their ideas or ask their stylist for alterations.
Furthermore, the service allows consumers to fill their spaces with products from a slew of retailers including Pier 1, Wayfair, Crate & Barrel, and West Elm. Once customers settle on their preferred designs, they can order furniture and fixtures through the company’s website. Additionally, the digital platform allows users to make unlimited revisions with each of its three AR interior styling packages.
High-Level Executive Guidance
In a press release announcing its new cash injection, Modsy indicated it will use its newly acquired funds to expedite its design services and scale up operations. As it happens, the startup now has some high-level help in executing its expansion plans.
In addition to leading Modsy’s funding round, investment firm TCV has added its executive vice president Tina Hoang-To to the company’s board. In her time with TCV, Hoang-To was part of a group that oversaw $88 billion in capital and helped bring companies like Spotify, Netflix, and Facebook into maturity. As such, she’s the kind of executive who can successfully guide the company into the next phase of its existence.
Financial analysts report the American online furniture sales market grew to $65.1 billion in 2018. Furthermore, researchers predict the e-commerce segment will increase by 11.8 percent by 2022. With its innovative services, fresh capital infusion, and invaluable guidance, Modsy is positioned to be a significant player within the rapidly developing sector.