Interior design startup HomeLane buys DesignCafe, raises Rs 225 crore in funding

HomeLane, a leading player in the home interiors market, has announced its acquisition of DesignCafe through a share swap deal.

The deal will create the largest home interior company in India in terms of projects delivered.

Post-acquisition, the combined entity is projected to achieve revenues of Rs 1,000 crore by FY25, up from Rs 761 c

HomeLane, a leading player in the home interiors market, has announced its acquisition of DesignCafe through a share swap deal.

The deal will create the largest home interior company in India in terms of projects delivered.

Post-acquisition, the combined entity is projected to achieve revenues of Rs 1,000 crore by FY25, up from Rs 761 crore in FY24, and become EBITDA profitable.

The strategic acquisition aims to consolidate the companies' strengths in manufacturing, design, procurement, and technology, driving efficiency and innovation.

Catering to different market segments

Despite the merger, HomeLane, DesignCafe, and other interior brands under HomeLane, such as Doowup and Cubico, will continue to operate as distinct entities. Both companies aim to cater to different segments of the home interiors market, offering tailored services for diverse customer bases. 

Raising Rs 225 crore

In addition to the acquisition, HomeLane has raised Rs 225 crore in funding from Sunil Kant Munjal’s Hero Enterprise and Claypond Capital, the family office of Manipal Group’s Ranjan Pai, alongside participation from existing investors, including WestBridge Capital.

The capital infusion will be directed towards growth and technology investments, with an emphasis on maintaining profitability and expanding the company’s presence in middle and lower-middle market segments.

Planning for IPO

Looking ahead, HomeLane is also eyeing an initial public offering (IPO) within the next 9 to 15 months.

“As we start thinking about an IPO in the short to mid term, we want to make sure that we are well capitalised in case there are any shocks,” said Tanuj Choudhry, Co-Founder of HomeLane.