Fabfurnish, Bedbathmore may merge ops to take on competition

E-furniture store FabFurnish may soon announce a merger with online home decor firm BedBathMore to join forces to compete against rivals like Ratan Tata-backed Urban Ladder and PepperFry.
According to sources, the companies are in an advanced stage of discussion and may announce the merger in about two weeks' time.
They added that investors of both the companies are in agreement and will continue to be associated with the new merged entity.
Interestingly, reports suggest FabFurnish's investor Rocket Internet is planning to pull the plug on the business.
Declining to comment on the merger, FabFurnish said it is exploring organic and inorganic options for growth.

"FabFurnish has successfully transitioned into a marketplace model. All the changes we have made over the last few months have started to show results. We are continuously evaluating organic and inorganic growth options to best serve our customers," FabFurnish said in an emailed statement.

BedBathMore declined to comment on the story.
Traditionally dominated by electronics and fashion, the Indian e-commerce segment is now seeing good traction across newer categories like furniture and wellness.
While there are niche players like Pepperfry, Urban Ladder and Fab Furnish, other marketplaces like Flipkart, Snapdeal and Amazon.In have also forayed into the category.
Industry analysts see a huge room for growth in the space as the USD 20 billion furniture market in India, which is largely unorganised, moves online.