Koala narrowed its losses in the past year but its days as a high-growth start-up appear over, with revenue at the online furniture store falling in Australia to $124 million and rising just 2 per cent annually when its international businesses are factored in.

The company has extended and renegotiated its debts, but faces $48.8 million of convertible notes coming due by July this year, which will need to be repaid with a mix of shares and cash.