DesignCafe to be acquired by omnichannel home interior design platform HomeLane
Leading player in the home interiors market, DesignCafe, is set to be acquired by HomeLane, an omnichannel platform for home interior design and renovation. A major interiors company in India is anticipated to be acquired; regulatory approval is pending.
Following the acquisition, it is anticipated that the combined company will turn a profit on equity basis (EBITDA) and generate revenue of Rs 1,000 crore ($120 million) in FY25, up 33% from Rs 761 crore ($92 million) in FY24. Doowup, DesignCafe, and HomeLane will all carry on as separate businesses that serve various market niches.
Additionally, HomeLane announced a Rs 225 crore ($27 million) funding round that includes fresh funding from Hero Enterprise in addition to investments from previous backers of both HomeLane and DesignCafe.
According to a press release from HomeLane, the acquisition is expected to create major synergies in a number of areas, including technology, design, manufacturing, and procurement. This will improve the combined entity’s offerings’ overall operational efficiency, spur innovation, and increase customer satisfaction.
Co-founders of HomeLane Tanuj Choudhry and Srikanth Iyer stated that the combined company is cash profitable with -2% EBITDA and has an ARR of Rs 900 crore in revenue.
With over 1,400 design experts servicing over 20,000 customers, HomeLane is a provider of interior solutions. It had previously raised $115 million from investors including Accel, Peak XV, and IIFL. According to reports, the company made Rs 173 crore less money in FY23 than it brought in, or Rs 574 crore.
Design Cafe, an online custom design and decor service provider, is based in Bengaluru and has raised almost $30 million to date.
