Helsinki-based furniture company KHOY Company has raised €2 million in growth funding to accelerate its international expansion, with the round led by Virta Equity and joined by Innovestor and several angel investors. KHOY has developed a direct-to-consumer model for selling sofa beds online, using vacuum-packing to compress its products into compact cardboard boxes and significantly reduce shipping costs compared with traditional furniture logistics. The new funding will support expansion across its existing European markets, Switzerland and the UK, while helping KHOY accelerate its entry into the US and invest further in its product portfolio, brand and operations.
Selling exclusively online, KHOY has developed a new approach to one of the furniture industry’s most difficult and expensive products to sell and ship online: the sofa. Its sofa beds are vacuum-packed into compact cardboard boxes and delivered directly to customers, expanding back to full size at home. Instead of difficult-to-use and uncomfortable mechanisms associated with traditional sofa beds, the awarded design is built around premium mattresses that simply unfold from a sofa into a bed. The model reduces the logistical complexity and allows KHOY to sell directly to consumers across markets. Vacuum-packing can reduce KHOY’s delivery costs by as much as 95% compared to traditional furniture logistics.
The company has grown rapidly since launching its first sofa bed in June 2024, reaching €4.3 million in revenue in 2025, with 13x growth from the previous year. The company is currently growing 166% year-on-year, in a market where traditional furniture companies are going bankrupt.
“We have proven that there is strong demand for a simpler way to buy furniture online. We have grown quickly while building a profitable business, and this funding allows us to accelerate from a strong position. Our ambition is to build KHOY into a major global online brand, with European quality,” says Visa Friström, CEO of KHOY Company.
Over 80% of KHOY’s sales already come from export. In 2025, its largest markets alongside Finland were Germany and France, with significant sales also coming from the Netherlands, Italy, Belgium, Austria, Ireland, Sweden and Denmark.
“Furniture is still an unusually local industry. Large products are expensive to store and transport, which makes international expansion difficult. Vacuum-packing changes that equation. We already know the model works across borders – for us, the next phase is about scale,” Friström says.
With the €2 million investment, the company will build on existing demand by scaling operations in its current markets in the EU, Switzerland and the UK, and accelerate its expansion into the US, while further developing its product portfolio, brand and operations.
“KHOY has solved something the furniture industry has struggled with: how to sell and ship large, bulky products across borders without the cost eating the margin. We back businesses with real, profitable growth behind them, and KHOY has a combination of a defensible product innovation and proven demand across Europe,” Heikki Kivirinta of Virta Equity comments.
Read the orginal article: https://arcticstartup.com/khoy-company-raises-e2-million/
