€2m · Growth/Late · E-commerce · Helsinki, Finland
Helsinki-based furniture brand KHOY has raised €2m in growth funding led by Virta Equity, with Innovestor and several angel investors participating. The company will use the capital to expand across the EU, Switzerland and the UK, accelerate its new US operation, and keep developing its product range, brand and operations.
KHOY sells sofa beds directly to consumers online. Its products are vacuum-packed into cardboard boxes for transport and expand after delivery, tackling a cost that usually keeps large furniture tied to local markets. The company says the method can reduce delivery costs by as much as 95% compared with conventional furniture logistics.
Compression turns shipping into the product advantage
A direct-to-consumer furniture company has to make two difficult transactions work at once: a high-consideration online purchase and the physical movement of a bulky item. KHOY's design links those problems. Compressing the sofa bed lowers the logistics penalty of selling across borders, while standard mattress dimensions, washable covers, home delivery and a trial period are intended to make the online purchase feel less risky.
The funding is therefore aimed at scaling a proven operating model rather than testing whether customers will buy the product at all. KHOY says it launched its first sofa bed in June 2024, generated €4.3m in 2025 revenue and is now growing 166% year on year. More than 80% of sales already come from outside Finland, led by Germany and France, and the company says it has remained profitable while expanding.
International growth will still test the economics. Lower outbound shipping costs do not remove returns, warehousing, customer support or the cost of building a brand in each market. The US adds longer distances and a new competitive environment just as KHOY broadens its European reach. The useful milestone is not simply more countries served, but whether contribution margins and customer satisfaction hold up as order volume and return complexity rise.
The company was founded in 2022 by Visa Friström, András Kelemen and Jukka Salmikukka, initially under the KOTA name. It rebranded as KHOY in 2026 while keeping the same team and products, framing the new name as part of its international ambitions. Virta Equity CEO Heikki Kivirinta said the investor saw defensible product innovation and proven European demand; this round will test whether that advantage travels as effectively as the compressed furniture itself.
Sources checked:
EU-Startups · KHOY company update · KHOY product FAQ · Tech.eu Funding Explorer
