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HomeLane to acquire DesignCafe, secures Rs 225 Cr in a new funding round
Category: Business News, Posted on: 30/09/2024 , Posted By: Ishika Agarwal
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Srikanth Iyer and Tanuj Choudhry are co-founders of HomeLane. Omnichannel home interior and renovation platform HomeLane has announced its offer to acquire DesignCafe, a leading player in the home interiors market. The acquisition, which is awaiting regulatory approval, is expected to be one of India’s largest interiors companies. Post-acquisition, the combined entity is projected to achieve a revenue of Rs 1,000 crore ($120 million) in FY25, representing a 33% increase from Rs 761 crore ($92 million) in FY24, and to become EBITDA profitable. HomeLane, Doowup, and DesignCafe will continue to operate as distinct brands, each catering to different market segments. HomeLane also announced a Rs 225 crore ($27 million) funding round, which includes investments from existing backers of both HomeLane and DesignCafe, as well as new funding from Hero Enterprise. The acquisition is poised to unlock significant synergies across areas such as manufacturing, design, procurement, and technology, HomeLane said in a press release. This will enhance operational efficiency and drive innovation and customer satisfaction across the combined entity’s offerings.

Srikanth Iyer and Tanuj Choudhry, co-founders of HomeLane, jointly said that the combined entity is already at a revenue ARR of Rs 900 crore and it is cash profitable and at -2% EBITDA. HomeLane provides interior solutions and claims to have over 1,400 design experts who service over 20,000 customers. Before this round, it had raised $115 million from the likes of Accel, Peak XV and IIFL. As per startup data intelligence platform, the firm reported Rs 574 crore revenue in FY23 with a loss of Rs 173 crore. Bengaluru-based Design Cafe offers an online customised design and decor service, and has scooped up nearly $30 million to date.

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