SUMMARY
- HomeLane to acquire DesignCafe, creating one of India’s largest interior companies, aiming for ₹1,000 crore revenue by FY25.
- HomeLane raises ₹225 crore in funding, including investment from Hero Enterprise, to drive operational synergies and innovation.
- Post-acquisition, HomeLane, DesignCafe, and Doowup will operate independently, catering to distinct market segments.
HomeLane, an omnichannel home interior and renovation platform, has announced its intent to acquire DesignCafe, a prominent player in the Indian home interiors market. The acquisition, which is subject to regulatory approval, is set to establish the combined entity as one of India’s largest interior companies. Post-acquisition, the entity is expected to generate revenue of ₹1,000 crore ($120 million) in FY25, marking a 33% increase from the projected ₹761 crore ($92 million) in FY24, and is on track to achieve EBITDA profitability.
Both HomeLane and DesignCafe will maintain their separate brand identities post-acquisition, alongside HomeLane’s existing brand Doowup, with each brand focusing on different market segments. The merger is poised to create significant synergies in areas such as design, manufacturing, procurement, and technology, improving operational efficiency, fostering innovation, and enhancing customer satisfaction.
Along with the acquisition announcement, HomeLane has also raised ₹225 crore ($27 million) in funding. The funding round saw participation from existing investors in both HomeLane and DesignCafe, as well as new investment from Hero Enterprise. This brings the total investment raised by HomeLane to $115 million, with support from prominent investors such as Accel, Peak XV, and IIFL.
Srikanth Iyer and Tanuj Choudhry, co-founders of HomeLane, shared that the combined entity has already reached a revenue ARR of ₹900 crore and is currently cash-positive with a -2% EBITDA. HomeLane serves over 20,000 customers through its network of more than 1,400 design experts, delivering customized home interior solutions.
DesignCafe, headquartered in Bengaluru, offers an online customized design and décor service, having raised nearly $30 million to date. TheKredible reports that HomeLane generated ₹574 crore in revenue for FY23, though the company faced a loss of ₹173 crore during the same period.
