Dive Brief:

• Digital-first furniture startup Tylko has raised 22 million euros (about $26 million as of press time) in a Series C funding round led by Pitango Ventures and Finnish Evli Growth Partners, the startup announced on Tuesday.

• The company said it plans to use the investment to create new sustainable and long-lasting materials; streamline its delivery, packaging and logistics processes; grow its network of collaborators; and improve its use of augmented reality, space recognition and other tech tools.

• Last year, the startup's sales spiked by 132%, per the announcement. The company also noted that it plans to launch into new product categories.

Dive Insight:

The jump in consumer demand during the COVID-19 pandemic was an indication that Tylko's direct to consumer model and made-to-order merchandise could scale, the company said. The company, which has an augmented reality app that allows customers to visualize products in their space before making a purchase, has raised 33 million euros to date and has served almost 60,000 customers since its founding in 2015, per the announcement.

"Right now, we need to invest in the best people in the industry to work with us and achieve Tylko's mission — to help us build the value for customers and shape the future of the furniture industry," Tylko co-founder and co-CEO Mikołaj Molenda said in a statement.

As Tylko raises money to make new furniture tech tools, other retailers have spent the past few years releasing new digital features to help customers visualize furniture in their homes. Stores like Wayfair, Target and Ikea have introduced AR tools to assist shoppers in picking and purchasing merchandise. Amazon introduced a virtual furniture showroom in January 2019 and went on to create its own AR shopping feature to allow users to visualize multiple items at once from Amazon and third-party sellers.