Carpediem Capital seeks out bold entrepreneurs who challenge the status quo and reshape industries. When we identified Flipspaces Tech, we saw an opportunity to support a company that was not only profitable but also pioneering a new-age approach in a traditional industry.
The Flipspaces Story: Innovating Interior Design
Founded in 2011, Flipspaces is a tech-enabled venture specializing in the design and delivery of commercial and retail spaces. With expertise in commercial interior design and turnkey project management, Flipspaces caters to office spaces, retail outlets, hospitality, education, and healthcare institutions.
What set Flipspaces apart as an investment opportunity was its proprietary virtual reality (VR) technology, which gamified the interior design experience. This innovation allowed customers—most of whom were not architects or designers—to visualize their spaces in 3D, make real-time design changes. This breakthrough addressed a common pain point: the gap between expectation and reality in interior design.
Investing in Vision
When Carpediem Capital first invested in Flipspaces, the company was already profitable. We saw a team of well-qualified founders bringing technology-driven differentiation to a legacy industry. Their innovative 3D walkthroughs not only enhanced customer experience but also streamlined execution, with projects being completed within a 60-90 day timeframe.
The founders were building a fast-growing business while remaining capital-efficient, hence were focused on being profitable even on a smaller scale and maintained tight control on working capital. We found an opportunity to be the first investor to back the founders and provide capital for accelerating their forward journey.
The Covid Challenge: A Near Shutdown and a Strategic Pivot
Then, the unforeseen happened—Covid-19. As lockdowns were imposed, office spaces shut down, and Flipspaces’ business nearly came to a standstill. It was a moment of crisis, and as equity partners, we stood by the company’s side, exploring every possible way to sustain the business.
Our fund was fully deployed and did not allow us to support the company with the capital required to sustain operations during this phase. However, we helped them raise equity capital from our LP network and access to debt through our networks.
With offline businesses suffering and online models flourishing, Flipspaces pivoted by offering its 3D walkthrough technology to retail furnishing businesses, enabling them to create immersive online experiences. While this move generated temporary revenues, transforming into a full-fledged tech product company was not the long-term direction.
Flipspaces identified expanding into the U.S. market as a valuable opportunity as they had already completed a project in Boston pre-pandemic. With the U.S. reopening before India, the founders decided to take a leap of faith. They moved to the U.S., built relationships, and established a strong presence in a new market.
Today, over 22% of Flipspaces’ revenue comes from the U.S., a testament to the founders’ resilience and vision.
A Turnaround Success Story: 8X Returns and Sustained Growth
What started as a profitable start-up and seemed like a write-off during the pandemic has become one of the best returns in Carpediem Capital’s Fund I, delivering an 8X return on our investment. Flipspaces is not only profitable but thriving, thanks to the determination and resilience of its founders, and Carpediem Capital’s support as growth partners. Flipspaces is another example of why we take pride in supporting entrepreneurs who are passionate and who dare to innovate and persevere, even in the face of adversity.
