HomeLane Cuts FY25 Loss By 8% To INR 111 Cr

Home interior design soonicorn HomeLane reduced its net loss for the fiscal year FY25 by 8% to INR 111.4 Cr from INR 121.7 Cr in the previous fiscal year. 

The reduction in net loss has come on the back of a hefty uptick in its top line in the fiscal under review. 

According to the startup’s filing with the Registrar Of Companies (RoC), HomeLane reported an operating revenue of  INR 747.8 Cr in FY25, marking a 22% increase from INR 613.6 Cr operating revenue in the previous fiscal year.  The startup primarily earns by charging contract fees on bookings. 

Including an other income component of INR 7.9 Cr, HomeLane’s total income for FY25 stood at INR 755.7 Cr in the year under review, again marking a 22% YoY uptick.

Although HomeLane continued to stay in the red in FY25, its core profitability seemed to have improved. In FY25, the startup’s EBITDA loss stood at INR 74.7 Cr, falling 19% from INR 92.6 Cr in the previous year. Meanwhile, the EBITDA loss margin improved to 10% in FY25 from 15% in the previous year. 

Founded in 2014 by Srikanth Iyer, Rama Harinath, and Vivek Parasuram, HomeLane designs and installs ready-made home interiors, like modular kitchens, wardrobes, and full home furnishings. Via its tech platform, HomeLane handles everything from interior designing to installation, eliminating the need for separate designers or contractors. 

While Harinath and Parasuram left HomeLane to start their own venture, the Bengaluru-based startup appointed CBO Tanuj Choudhry as its cofounder in 2020. 

During the fiscal year,  HomeLane acquired DesignCafe, a smaller rival, in a share-swap transaction. With the acquisition, CEO Iyer believed that the consumer services startup would hit an annual revenue of INR 1,000 Cr and achieve EBITDA profitability in the near future.

Besides the acquisition, the startup also announced the raise INR 225 Cr from Hero Enterprise and its existing investors in September 2024. 

Overall, the 11-year old startup has raised about $157 Mn from investors like Accel, Peak XV, JSW Ventures among others. As per Inc42 analysis, the soonicorn’s last known valuation was around $360 Mn. 

Zooming Into HomeLane’s FY25 Expenses

The startup’s total expenditure increased 17% to INR 867 Cr in FY25 from INR 738.8 Cr spent in the previous fiscal year. 

Cost Of Material Consumed: The cost under this category surged 11% to INR 320 Cr in FY25 from INR 287.8 Cr in the year ago period. This cost includes purchase of wood work and other accessories. 

Employee Benefit Cost: The real estate tech startup spent INR 239.2 Cr on its employees in the fiscal year, up 28% from INR 187 Cr spent in FY24. This expenditure includes salary, bonus and other employee welfare expenses. 

Advertising Expense: The startup spent INR 84.4 Cr to promote itself in the fiscal year, almost flat when compared with the INR 83.1 Cr spent on advertisements  in the previous fiscal year.