Home Decor Startup Vaaree To Raise INR 20.78 Cr In Pre-Series A Funding

Home furnishing startup Vaaree is looking to raise INR 20.78 Cr ($2.5 Mn) in Pre-Series A funding. The round will be led by Bengaluru-based venture capital firm Capier Investments.

Peak XV’s Surge Ventures, which has backed Indian startups like Ethereal Machines, InCore, Mindgrove and ZeroK among others, also participated in the round.

While Capier Investments will be infusing INR 12.47 Cr, Peak XV’s Surge is looking to invest INR 8.31 Cr in the round.

The board of directors of the company had passed a resolution in March to issue 3,063 Pre-Series A cumulative compulsorily convertible preference shares to raise INR 20.78 Cr, with a face value of INR 10 each, as per its filings.

The development was first reported by Entrackr.

Founded by Garima Luthra, Pranav Arora, and Varun Vohra in 2022, Vaaree is an omnichannel home decor startup, which offers products ranging from kitchenware and home decor items to bedding and furnishing.

Last year, the Bengaluru-based startup raised $4 Mn in a funding round led by Peak XV’s Surge, with participation from PeerCapital, All In Capital and Better Capital.

At the time, the company said it would utilise the funds to ramp up its hiring efforts and enhance user experience on its online platform.

Notably, Vaaree appeared in the July 2023 edition of Inc42’s ‘30 Startups To Watch’ column.

It has also raised funding from angel investors such as CRED cofounder and CEO Kunal Shah, Sugar Cosmetics cofounder and CEO Vineeta Singh and Mamaearth cofounder Gazal Alagh among others.

India’s home decor market is expected to grow at a CAGR of 4.14% to reach a valuation of $40.98 Bn by 2028, as per data from Research Markets.

So, it’s only fitting that several new players are cropping up in the space and are attracting significant investor interest.

Home renovation and interiors platform Livspace entered the unicorn club in 2022 after raising $180 Mn in its Series F round led by private equity group KKR. Now, it is planning to shift its domicile from Singapore to India, with an IPO in mind.

Last year, home interior solutions startup HomeLane raised INR 75 Cr from existing investors.