Home Interior & Renovation Startup ‘Homelane’ To Buy Designcafe, Bags INR 225 Cr Funding

HomeLane, an omnichannel home interior and remodeling platform, has announced an offer to buy DesignCafe, a key participant in the home interiors sector. The transaction, which is still seeking regulatory approval, is likely to result in one of India’s leading interiors companies.

HomeLane has recently announced a Rs 225 crore ($27 million) fundraising round, which comprises investments from existing HomeLane and DesignCafe investors, as well as fresh funding from Hero Enterprise.

Following the purchase, the merged startup is expected to generate Rs 1,000 crore ($120 million) in sales in FY25, up 33% from Rs 761 crore ($92 million) in FY24, and become EBITDA profitable. HomeLane, Doowup, and DesignCafe will continue to operate as separate brands, each catering to a particular market group.

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According to HomeLane, the acquisition is expected to result in significant synergies in production, design, procurement, and technology. This will improve operational efficiency while driving innovation and consumer satisfaction throughout the merged entity’s products.

Srikanth Iyer and Tanuj Choudhry, co-founders of HomeLane, stated that the combined firm has a revenue ARR of Rs 900 crore and is cash profitable with      -2% EBITDA.

HomeLane offers interior design services and claims to have over 1,400 design professionals who serve over 20,000 consumers. Prior to this round, it raised $115 million from Accel, Peak XV, and IIFL.

According to startup data intelligence platform TheKredible, HomeLane generated Rs 574 crore in revenue in FY23 but lost Rs 173 crore.

Bengaluru-based Design Cafe provides an online bespoke design and decor business and has raised approximately $30 million to date.