Koala Furniture Targets $250M IPO for Global Growth

Koala Furniture is gearing up for a public listing, seeking a valuation between $250 million and $300 million. The company, originally known for its online mattress sales, has expanded into furniture and now operates in Australia, Japan and the US, with plans to enter the UK market. Backed by early investor interest, the business is aiming to raise around $100 million through investment bank Barrenjoey.

Since its inception, Koala has gained traction with its direct-to-consumer model, making furniture shopping more convenient. The US market has become a major focus for its revenue growth, helping drive significant expansion. The company, led by one of its co-founders, is partially founder-owned, a factor that early institutional investors find appealing.

Financially, Koala delivered $240 million in revenue last year, with earnings before interest, tax, depreciation and amortisation hitting $7.7 million. This year, the company expects to grow revenue by 25%, strengthening its position ahead of its IPO. With a solid market presence and a clear expansion strategy, it appears well-positioned for growth, though market conditions will ultimately shape the success of its listing.

Source: The Australian, Clear Value, Cannings