Exclusive: Home Decor Startup Vaaree Closes Pre-Series A Round At $4.6 Mn

Home decor marketplace Vaaree has raised INR 17.98 Cr (around $2.09 Mn) in an extended pre-Series A funding round from existing investors PeerCapital and Peak XV’s Surge Ventures. 

The funding round also saw participation from Sattva Family Office, Satyadharma Investments, Castle Investment, All In Capital LLP and Asian Paints family office, as per the startup’s regulatory filings accessed by Inc42. 

While PeerCapital infused INR 6.5 Cr in the startup, Surge Ventures invested INR 6.39 Cr.

Confirming the development, the startup said that the fresh funding was an extension of its pre-Series A round and it has now closed the round at $4.6 Mn (about INR 39.5 Cr). The startup raised INR 20.78 Cr from the same investors in its pre-Series A round last year. 

Founded by Garima Luthra, Varun Vohra and Pranav Arora in 2022, Vaaree offers a wide range of home decor products via its marketplace. It has more than 80K SKUs in segments like bedding, furnishing, kitchen utensils, bath products, gardening essentials, and more. 

In a statement, Vaaree said it would utilise the fresh funds to leverage AI to facilitate product discovery on its platform and increase brand awareness. 

The startup is currently developing an AI-powered discovery feature for users, VibeCheck. 

It will create moodboards and assist customers in styling their homes. Vaaree is also working on reducing its shipment time to 1 day from 3-5 days currently.  

Vaaree claims to have served over 1 Lakh customers across India since its inception. The startup claims to partner directly with manufacturers to offer affordable prices to the customers.

Prior to this round, Vaaree raised $4 Mn in 2023 from Surge Ventures, PeerCapital, All In Capital, and Better Capital.

The startup competes with the likes of Artment, Haus & Kinder, and Nestasia in the burgeoning home decor market of the country.

As per a report, India’s home decor market is expected to clock a 5.40% CAGR to reach a size of $40.8 Bn by 2033 from $25.50 Bn in 2024.

Vaaree is eyeing a big share in this growing market. On the financial front, its revenue surged multifold to INR 7.06 Cr in FY24 from INR 1.91 Cr in the previous fiscal year, as per its filings sourced from Tofler. Net loss, too, zoomed to INR 15.79 Cr during the year from INR 3.5 Cr in FY23.