Helsinki-based furniture brand KHOY has secured €2 million in growth funding to support international expansion and its new United States operation. The round was led by Virta Equity, with participation from Innovestor and several angel investors. The company, which sells vacuum-packed sofa beds directly to consumers online, plans to use the capital to expand across the European Union, Switzerland, and the United Kingdom.
Compressed Shipping as a Product Advantage
KHOY sells sofa beds that are vacuum-packed into cardboard boxes and expand after delivery. This approach directly addresses the freight expense that traditionally keeps large furniture confined to local markets. The company reports that its compression method can cut delivery costs by as much as 95% compared with standard furniture logistics, making cross-border sales more economically viable.
Funding for a Proven Operating Model
The new capital is intended to scale an operating model that has already shown traction rather than simply to test whether customers will buy the product at all. KHOY launched its first sofa bed in June 2024, generated €4.3 million in revenue during 2025, 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.
Expansion Across Europe and the United States
The company will use the funding to expand across the European Union, Switzerland, and the United Kingdom while accelerating its new United States operation. It also plans to continue developing its product range, brand, and operations. International demand is already a central part of the business, with most revenue generated outside Finland and particularly strong traction in Germany and France.
New Identity for International Ambitions
KHOY was founded in 2022 by Visa Friström, András Kelemen, and Jukka Salmikukka under the original KOTA name. The company rebranded as KHOY in 2026, keeping the same team and product range while aligning its identity with international growth. Its direct-to-consumer model combines standard mattress dimensions, washable covers, home delivery, and a trial period to reduce the perceived risk of buying furniture online.
Investor Confidence
Virta Equity CEO Heikki Kivirinta said the investor saw defensible product innovation and proven European demand. The firm views KHOY's compression-based logistics as a meaningful advantage in a furniture category that is otherwise difficult to scale across international borders. This round is expected to test whether that advantage travels as effectively as the compressed furniture itself, especially as the company enters larger and more competitive markets.
Challenges to Monitor
International expansion will still test the economics through returns, warehousing, customer support, and the cost of building a brand in each new market. The United States adds longer delivery distances and a new competitive environment just as KHOY broadens its European reach. The key milestone will be whether contribution margins and customer satisfaction hold up as order volume and return complexity rise.
KHOY enters its next phase with a logistics model designed to remove one of the main barriers to selling bulky furniture online across borders. The €2 million growth round gives the company capital to pursue wider European reach and an early United States presence while continuing to refine its product and operations. Its ability to maintain profitability and customer satisfaction during this expansion will likely determine how far the compressed furniture advantage can travel.