HomeLane raises funds, seeks to enter more cities2 min read . Updated: 23 Dec 2019, 11:26 PM IST
- HomeLane is currently present in 7 cities
- The $30 million funding will help the online interior design and furniture company expand into new markets
BENGALURU : Homevista Decor and Furnishing Pvt Ltd, which runs online interior design and furniture company HomeLane, has raised $30 million in a fresh round of funding to fuel its expansion into home renovation as a service and to expand into 10 new cities, the company said in a statement on Monday.
The Startup’s Series D round was led by new investors, including a Dubai-based investor’s private equity firm Evolvence India Fund (EIF), Pidilite Group and New-York based investment firm FJ Labs, with participation from Sequoia Capital, Accel Partners, and JSW Ventures. With the current round, the total funding raised by HomeLane stands at $46 million.
Founded in 2014 by Rama Harinath, Srikanth Iyer, and Vivek Parasuram, the startup 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.
“With this investment, we will accelerate our expansion into newer markets…We will also build a world-class offering for the $12 billion home renovation market. Our focus on technology to improve both experience and efficiency for our consumers and design partners will continue, with significant investments in people and product," said HomeLane’s chief executive Iyer in a statement.
The startup also provides design modules for kitchen spaces, bedrooms, and other furniture sets such as wardrobes, storage units, and study tables to homeowners. HomeLane is currently present in 7 cities, including Bengaluru, Chennai, Hyderabad, Mumbai, NCR, Kolkata and Pune and claims to have completed over 6,000 projects to date.
Iyer said the fresh investment comes at a time when the company is “closer to (achieving) EBITDA profitability". HomeLane had reported ₹40 core in revenues in the financial year ended March 2018 (FY1) along with a net loss of ₹29.33 crore losses in the same year. The startup had incurred total expenses of ₹70.2 crore in FY18. HomeLane is yet to file full-year FY19 results.
Tanuj Choudhry, chief business officer, HomeLane, said in a statement that HomeLane would exit FY20 "at an ARR of INR 700Cr and that the start-up is on track to getting to company-wide profitability in early FY21."
HomeLane also has an offline presence through its 16 experience centers which offer customers a choice to browse through its catalog using virtual 3D designs. It also has an affiliate program 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 relationships as well.
HomeLane competes with other interior design startups such as Livspace, and platforms including Pepperfry, and Urban Ladder that sells furniture online. Mint reported last week that Livsapce is currently in talks to raise $100 million, at a valuation of $500 million.