Nigeria-based and Africa-focused furniture brand, Taeillo, has raised $2.5 million to improve quality furniture delivery around the African continent.
The brand, which was founded in 2018 by Jumoke Dada, raised the $2.5 million funding from the Nigeria-based early-stage growth equity and women-focused fund, Aruwa Capital.
The funds, according to the Taeillo, will be used to improve its delivery capacity by reducing delivery times to about 3 – 5 days. The brand plans to achieve the timing by pre-manufacturing some of its best-selling furniture, instead of waiting till customers make orders before starting production. The company added that the funds will also help scale its “Pay with Flexi” product, which will empower shoppers to buy furniture and pay in installments.
According to reports, Taeillo manufactures about 70% of the products it sells, and also works with third-party manufacturer who make the components for the product for Taeillo to assemble at its warehouse, before shipping to end-users.
While speaking on how it plans to handle delayed delivery, the company claims that working with third-party manufacturer is the reason behind the delay it experiences in delivering its products, and it plans to cut down on delivery time by pre-manufacturing some of its products.
“Sometimes, as a modern business, you must deal with crude suppliers. But recently, we’ve had to change our suppliers to shorten the time we get the materials. Right now, we’re also working around strategic partnerships with third-party logistics companies and might set up a logistics arm to help us improve our deliveries,” CEO, Dada, said.
The online furniture manufacturer and retailer has since expanded from its Lagos base to Kenya, added ten more product categories, and sent more than 10,000 pieces of furniture to more than 5,000 clients in both countries. As a result of the $150,000 funding it got from CcHub syndicate in 2021, the brand has also tripled its income over the previous year.
Speaking on the fundraise, CEO, Dada said:
“We’ve done a lot of work with less. So now, we want to get outstanding talent that will take us to the next growth stage. Also, we want to increase our market share, optimize operations, hack our supply chain and ensure that customers have a great experience.”
Adesuwa Okunbo Rhodes, founder and managing partner at Aruwa Capital, which focuses on women-led startups, said investing in Taeillo aligns with one of her firm’s investment objectives:
“In line with Aruwa’s gender lens investing strategy, Taeillo is founded and led by a woman and has a 50% female representation in its management team. […]The company (Taeillo) has maintained its innovative model in a traditional brick-and-mortar industry, creating a unique value proposition for its customers in a fast-growing, underserved market. By leveraging technology in its value chain, Taeillo has been able to achieve exponential growth in less than 2 years, achieving results that take traditional furniture companies decades to achieve.”
Aruwa Capital has recently closed a $20 million+ fund from Visa Foundation and other LPs to invest in 10 startups across fintech, healthcare, renewable energy and essential consumer goods serving the female population.