Revival

Revival

Growth Stage

The tech-enabled rug retailer modernizing the home decor industry

The tech-enabled rug retailer modernizing the home decor industry

Overview

Raised this Round: Raised: $175,902

Total Commitments ($USD)

Platform

Republic

Start Date

03/16/2023

Close Date

04/28/2023

Min. Goal
$25,000
Max. Goal
$1,235,000
Min. Investment

$100

Security Type

SAFE

Series

Series A

SEC Filing Type

RegCF    Open SEC Filing

Valuation Cap

$33,000,000

Discount

0%

Year Founded

2017

Industry

Consumer Products, Goods & Services

Tech Sector

Retailtech

Distribution Model

B2B/B2C

Margin

Medium

Capital Intensity

High

Location

Berkeley, California

Business Type

Growth

Revival, with a valuation of $33 million, is raising funds on Republic. The company is modernizing the home decor industry with its top-quality rugs. The rugs of Revival are made using high-quality craftsmanship and thoughtful design and come at affordable prices. Revival sells its rugs through a tech-enabled platform that makes shopping easy, returns convenient, and free design support. Revival has reported over $10 million in net sales, with a 70% net sales growth in 2022 and 16 times growth since 2018. Ben Hyman and Kurtulus Cumhur Korkmaz founded Revival in May 2017. The current crowdfunding campaign has a minimum target of $25,000 and a maximum target of $1.24 million. The campaign proceeds will be used for performance marketing, new hires, and general working capital.

Summary Profit and Loss Statement

FY 2021 FY 2020

Revenue

$6,933,438

$4,135,046

COGS

$3,115,905

$1,903,135

Tax

$3,934

$2,219

 

 

Net Income

$-926,684

$-674,689

Summary Balance Sheet

FY 2021 FY 2020

Cash

$472,319

$364,464

Accounts Receivable

$0

$23,402

Total Assets

$2,626,972

$1,596,696

Short-Term Debt

$1,828,965

$853,303

Long-Term Debt

$247,900

$34,375

Total Liabilities

$2,076,865

$887,678

Financials as of: 03/16/2023
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Overview

Revival is a tech-enabled rug retailer with a global footprint. Revival’s broad product offering includes upcycled rugs, one-of-a-kind pieces, and washable rugs. With operations in India, Morocco, and Turkey, the team is able to get the best deals straight from the source to improve margins and begin presales before the rugs even make it to the U.S. 

Serial entrepreneurs Ben Hyman and Kurtuluş Korkmaz founded Revival. In 2022, the duo brought in $11.1 million in net revenues and raised $3 million in prior capital. Around 95% of revenue to date has been from direct-to-consumer sales, with the rest coming from work with interior designers and retail and hospitality partners. Ben and Kurt plan to grow this side of the business in the coming years. For its impressive early traction and strong co-founder team, Revival has been rated a Top Deal by the KingsCrowd Team.

Next Section: Price

Price

At $33 million, Revival is undervalued for a company bringing in $11.1 million in 2022 net revenue. Most of the large incumbents in the carpets and rugs market, like Rugs USA and Ruggable, have estimated valuations in the hundreds of millions. Revival has plenty of room to grow within the massive global rugs market and create a return for investors who commit at the $33 million valuation cap.

Next Section: Market

Market

The global carpets and rugs market stood at $82.1 billion in 2022. The market is expected to grow annually at a rate of 5.5% — so it’s not going to explode anytime soon. The market is hugely fragmented and there are a few household names (mostly home furnishing giants), but when it comes to big players, no singular brand sticks out. With a market this large, there is plenty of room for smaller startups to grow. Capturing just a fragment of an $82 billion market could leave room for a $33 million company to grow 5x, 7x, or 10x.

Next Section: Team

Team

Revival was founded by experienced entrepreneurs Ben Hyman and Kurtuluş Korkmaz. In 2013, Ben was on the founding team at Brooklinen, a bed and bath linen company that raised $60 million in venture funding. Brooklinen remains privately held. Hyman left his role at the company to join Samsung as a strategy manager, where he met Kurt. Kurt launched Blueground, a rental furnishing company, in 2013. The company has amassed more than $256 million in funding and remains privately held. He continues to advise the company. The two have grown the Revival team to 35 members across the globe. 

An investment in Revival is an investment in two power founders. This duo knows how to scale a business and read market trends. Both have had incredible success as entrepreneurs in consumer goods and there are no concerns with their ability to execute with Revival.

Next Section: Differentiators

Differentiators

There are not many ways to stick out in this massive and crowded market. Revival rugs are high quality with a range of contemporary designs, and customers rave about their purchases in reviews on the site. Offerings include both indoor and outdoor rugs, washable rugs, and upcycled one-of-a-kind textiles. But there are a number of high-quality rug makers out there. Producing a high-quality product is not enough to become a market leader. 

Revival is cheaper than big box retailers. An 8 x 10 wool rug from Pottery Barn or Crate & Barrel can cost thousands of dollars. Revival’s comparable rugs go for $689. Rugs USA, a discount rugs retailer, does offer a competing price. Of course, these rugs are not exactly the same and there will be some range with regard to size and material, but Revival remains on the cheaper end of the market. 

Revival can keep costs low by controlling much of the supply chain and working with an in-house design team, as well as 100-plus makers on the ground in India, Turkey, and Morocco. By working directly with weaving houses, the team can iterate on products quickly and provide additional quality assurance. By having team members on the ground abroad, Revival reduces overhead costs while keeping a strong 50% gross margin. In addition, the company’s global presence allows for a greater inventory. Revival offers up to 10,000 products at any given time. 

Revival offers a range of products from this large inventory, including washable rugs, one major trend in the current market. The upcycled rugs featured on the site could also draw in customers who want to feature something unique in their home. Revival tags the upcycled vintage rugs across the site that are one-of-a-kind, handpicked across India, Turkey, and Morocco. Few other retailers have such a comprehensive offering. 

Next Section: Performance

Performance

Revival co-founder Ben Hyman expects to break even in 2023. He reported that the company is nearing profitability and expects net revenue to come in at more than $20 million for the year. 2022 net revenues stood around $11 million, so hitting more than $20 million this year would show impressive growth. The company is venture-backed and has more than $3 million in capital committed to date. Ben reported a $34,000 operating loss for February and around $700,000 in cash on hand. Gross margins are currently 50%. The company is in good financial standing and has plenty of runway as it closes out this raise. 

Next Section: Bearish Outlook

Bearish Outlook

The rug market is not going to experience explosive growth anytime soon. And Revival faces plenty of competition in the market. There will likely never be a clear winner in the space, and it is hard to stand out in a meaningful way. It is unclear whether being at the lower end of the price spectrum and delivering on quality will be enough for Revival to stand out. 

Next Section: Bullish Outlook

Bullish Outlook

An investment in Revival is an investment in the founding team. Ben Hyman and Kurt Korkmaz have stellar track records as founders and high-level managers. Both founders started and grew businesses and achieved millions in funding independently before Revival. If you are going to bet on a founding team in the consumer goods or home textiles space, this is the team to bet on. The rugs market is crowded, but this team knows how to sell their product. And the company’s early traction speaks for itself. Bringing in $11 million in net revenue for 2022 speaks to the duo’s ability to execute. At a $33 million valuation cap, Revival is arguably undervalued. 

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Revival on Republic 2023
Platform: Republic
Security Type: SAFE
Valuation: $33,000,000

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