Success Story of Urban Ladder Founders: Ashish Goel and Rajiv Srivatsa
Ashish Goel and Rajiv Srivatsa, the founders of Urban Ladder, both graduated from prestigious institutions—Ashish from IIT and Rajiv from IIM—and gained valuable experience working with McKinsey & Co. and Yahoo, respectively. Driven by a desire to start their own venture, they sought a niche online market. Their inspiration came from a shared frustration when they both bought new homes and encountered a frustrating experience while buying furniture. The lack of good online options led them to spend months without proper furnishings.
Realizing the potential for an online platform dedicated to furniture and home decor, they founded Urban Ladder. After extensive market research and brainstorming, they launched the company to provide a better solution for home decoration.
The Beginning and Growth of Urban Ladder
Founded in 2012, Urban Ladder started as a small team of ten working out of a home in Bengaluru’s Marathahalli area. From the beginning, the founders emphasized style and customer satisfaction. Urban Ladder quickly gained attention in major cities for its curated selection and unique features, such as providing human silhouettes to help customers visualize furniture size. This feature proved to be highly popular.
In its first year, Urban Ladder handled slightly over 50 orders per day, with an average ticket size of Rs 15,000 to Rs 20,000.
Overcoming Initial Challenges
Starting in a competitive market was no easy feat. Urban Ladder faced competition from established players like Pepperfry, FabFurnish, Home Centre, and many others. Here’s how the founders navigated the initial hurdles:
- Building Relationships with Vendors: Rajiv and Ashish persuaded vendors to trust their vision and products, which took time but eventually led to successful partnerships.
- Hiring a Dedicated Team: They assembled a skilled team, often at lower salaries, by convincing potential hires of their vision and potential. Many of these early team members are still with the company.
- Making Tough Decisions: The founders chose to focus on just three cities instead of a pan-India expansion. This strategic decision allowed them to conserve resources and concentrate on building a strong foundation.
Funding and Investments
In the first three months, Ashish and Rajiv met Vani Kola and the team from Kalaari Capital. Despite doubts about their ability to scale, the founders’ sharp focus on 35 categories and three cities convinced Kalaari Capital to invest $1 million.
A year later, to address market competition, Urban Ladder raised $5 million from SAIF Partners and Kalaari Capital in a Series A round. In 2014, they secured $21 million from Steadview Capital and existing investors, with Ratan Tata also investing an undisclosed amount later that year.
Urban Ladder has since raised a total of $112.8 million over eight funding rounds. Their most recent round, a $5.6 million debt financing from Trifecta Capital in September 2018, marked a significant milestone.
The Journey Ahead
From its humble beginnings, Urban Ladder has grown to operate in 17 states, delivering high-quality products and services. The company’s success is a testament to the founders’ dedication, transparency, and unwavering commitment to customer satisfaction. What began as a simple idea has transformed into a leading name in the furniture industry.