Bengaluru: Homevista Decor and Furnishing Pvt Ltd, which runs online interior design and furniture company HomeLane, is expanding in two new cities, including Kolkata and Pune, and will invest around ₹15 crore for expansion, according to a top company executive.
The startup aims to add around 1,000 homes in both cities in the next year. HomeLane will also add 200 new interior designers in these two cities. Srikanth Iyer, co-founder and CEO, HomeLane, told Mint that both Kolkata and Pune would make up around 4% of its business by the end of this year.
Founded in 2014 by Rama Harinath, Srikanth Iyer, and Vivek Parasuram, the startup currently claims to have delivered over 3,900 projects in cities, including Bangalore, Chennai, Hyderabad, Mumbai, and the National Capital Region (NCR).
The company expects around 25,000 new home units to come up in the real estate market in Kolkata and Pune this year.
With Pune and Kolkata, HomeLane will now be in seven cities. It also has 10 offline experience centres across the country. In May last year, the company allocated $5 million to expand its offline stores, which currently sees 20 to 25% conversion rate.
HomeLane provides end-to-end interior design solutions to customers. Users log onto HomeLane, engage with designers on the platform to customize designs and furniture sets best-suited to their needs.
The startup provides design modules for kitchen spaces, bedrooms, and other furniture sets such as wardrobes, storage units, and study tables to homeowners. It also has an affiliate programme for sourcing designers onto the platform.
HomeLane pays a 6-8% commission to affiliate designers for every design project that they take up for customers. HomeLane manufactures and installs the furniture at the customer’s site while the designer also oversees customer relationship as well.
“We have been noticing huge demand among design conscious new homeowners in both Pune and Kolkata and we are expecting a huge volume of business coming from these two cities. We had closed 2018-19 with an ARR of 400% higher than last year and expect to double the number by the end of this year," said Iyer.
To date, HomeLane has raised about $65 million in venture funding from investors such as Accel Partners, Sequoia Capital, Aarin, Growth Story and Baring PE. HomeLane competes with other interior design startups such as Livspace, Pepperfry, and Urban, which also has been ramping up their offline footprint, particularly after the entry of Ikea in Hyderabad last year.