With the focus set on being profitable by 2021, Bengaluru-based online home furnishing startup HomeLane has raised $4.56 Mn (INR 32.8 Cr) in its ongoing Series D1 funding.
According to the Ministry of Corporate Affairs filings accessed by Inc42, the company has raised $1.19 Mn (INR 8.5 Cr) in Series D1 by issuing 4,27,663 CCPS and 10 equity shares to JSW Ventures on February 21. With this, JSW Ventures has picked up 2.62% stake in the company.
Founded in 2014 by Rama Harinath, Srikanth Iyer, and Vivek Parasuram, HomeLane is an online provider of home fit-out solutions. It offers personalised design service to customers through their panel of interior designers who work with them to customise the house designs. At present, it operates in Bengaluru, Chennai, Hyderabad, Mumbai and Delhi-NCR.
The company was last valued on January 30, 2019 at INR 314.51 Cr. It said in its filings that the company requires funds for its continued operations and further expansion of business and working capital business.
This came after the company issued preferential shares to Accel Partners and Sequoia India earlier in October 2018.
At the time, Sequoia secured 5,26,416 Series D1 CCPS for $1.47 Mn (INR 10.46 Cr) while Accel secured 7,01,888 Series D1 CCPS for $1.9 Mn (INR 13.9 Cr).
As an organised online home furnishing marketplace, HomeLane offers an industry-first 45-day delivery guarantee for fit-outs. It claims that the value proposition is solving the interior design problem with technology and predictable timelines. HomeLane claims to have delivered 3,900 projects since inception.
Other major startups like operating in this space include Urban Ladder, LivSpace, Pepperfry and FabFurnish which are taking the home interiors to a different level.
The Indian home design and decor market were poised to grow from $13 Bn in 2010 to over $45 Bn by the end of 2017. By 2018, home furnishing market in India was expected to grow at CAGR of 8% by value to reach $5.29 Bn.
Update: February 26, 2019| 12:50 PM
After the story was published, HomeLane cofounder and CEO Srikanth Iyer told Inc42 that this was a bridge round as the company is preparing for a next Series D round. The company said it will use the funds to fuel expansion of HomeLane experience centers in existing and new markets. A chunk of the fundd will also be utilised to boost technology and brand strengthening.
Iyer also said that the company has been unit profitable for more than last one year. He also shared that since IKEA entered India last year, the company has noticed 50% M-0-M growth in Hyderabad.