Modsy raises $37 million for shoppable 3D room remodeling
Modsy, a San Francisco-based startup developing a platform that lets property owners create virtual renderings of rooms and restyle them in real time, today announced that it’s raised $37 million in funding led by TCV, with participation from Norwest Venture Partners, Advance Venture Partners, and Comcast Ventures. CEO and founder Shanna Tellerman said the capital infusion, which follows a $23 million series B round in December 2017 and brings the company’s total raised to $71 million, will enable Modsy to scale while investing in 3D automation, expanding its marketplace, and “upleveling” its services.
“Modsy is the future of furniture shopping, and we are thrilled to partner with such a forward-thinking and customer-centric firm like TCV to help us fulfill our vision,” she said. “I founded Modsy on the premise that in the future we would all be shopping from a personalized catalog-like experience within a virtual version of our real homes … We are excited about partnering with TCV to build Modsy into a household name and furthering our mission of enabling our customers to create the home of their dreams.”
Modsy’s technology digitally replicates rooms in 360 degrees with furniture from dozens of well-known brands, including West Elm, Crate & Barrel, Anthropologie, Joybird, Wayfair, Pottery Barn, Interior Define, Design Within Reach, Minted, Serena & Lily, Pier 1 Imports, and CB2. Users can purchase any fixture — whether a couch, rug, armoire, or coffee table — on the spot, either through Modsy directly or through partner tools like Crate & Barrel’s 3D Room Designer and CB2’s CB2 Interiors.
Here’s how it works: First, Modsy customers snap photos and take measurements of their spaces and complete a style quiz, indicating their preferences, budget, and constraints. The answers feed into a proprietary algorithm that attempts to suss out their taste and style, which Modsy collates (along with the pics and dimensions) and forwards onto its team of designers. Customers get two virtual design plans of their room, and from that point forward, they’re able to consult with Modsy’s team or fine-tune with a self-service 3D Style Editor suite, and shop retailers from which they receive exclusive discounts and promotions.
Modsy says it’s created over two million shoppable room renders since its 2015 launch.
Augmented reality (AR) interior design tools aren’t exactly novel. One of Swedish retail giant Ikea’s smartphone apps — Ikea Place — lets users preview home goods by dragging and dropping them in-scene, and Sotheby’s last year partnered with Roomy to launch a virtual staging app called Curate that enables prospective buyers to fill homes with their choice of decor and view the results in real-time 3D. Meanwhile, Wayfair’s Android app recently gained an AR feature that lets customers visualize furniture by holding up their smartphones.
But unlike its competitors, Modsy has built bespoke services like Live Swap atop its platform, which allows customers to quickly swap furniture from within its 3D Style Editor. Moreover, it’s launched a Modsy-exclusive ancillary furniture business — Minna Home — that offers eight styles of sofas and chairs designed in-house from thousands of customer data points and feedback.
It’s a safe bet that this diversification strategy is partly responsible for Modsy’s growing customer base (up 450%) and headcount (151%).
“The U.S. home furnishing market is a massive multi-billion dollar industry and we are seeing a very clear secular shift online,” said TCV executive vice president Tina Hoang-To, who will join Modsy’s board of directors. “Modsy is redefining the way consumers can buy furniture by leveraging technology and machine learning to introduce efficiency, transparency, and affordability to an antiquated home design industry. We are excited to partner with Modsy and believe the company is well-positioned to transform this industry in a significant way.”
Modsy charges $69 for a 3D room model and unlimited revisions with a Modsy designer, with a design turnaround time of six to eight days. The next pricing tier up — Premium — adds in a concierge shopping service; one-on-one video, email, or phone consultations with a project manager; and $150 off the first purchase of $1,500 or over and a reduced turnaround of four to seven days. The $349 plan is identical to Premium, but expands the number of rooms from one to three.
Modsy has over 100 full-time employees and recently filled out its C-Suite with key hires hailing from HotelTonight, StitchFix, and DoorDash. Previous investors include, NBCUniversal, GV, Birchmere Ventures, BBG, and individual angel investors.