Lightspeed Backs Workspace Interiors Startup OfficeBanao With $6 Mn Funding

Workspace interiors startup OfficeBanao has raised $6 Mn in seed funding round from Lightspeed Venture Partners.

The startup plans to use the fresh capital to strengthen its technology part and team, specifically in design and growth capabilities.

Founded in January 2022 by Tushar Mittal, and cofounded by Akshya Kumar, and Divyanshu Sharma, OfficeBanao serves designers, architects, contractors, office furniture, and material suppliers with commercial interiors. The startup said, it caters to a range of projects that start from INR 10 Lakh of small offices to a higher INR 5 Cr large offices and enterprise projects and more.

It claims to be present in more than 15 cities across the country. OfficeBanao currently has two offices in Delhi and Bengaluru and a team of 110 people.

Over the next few months, the startup will also focus on establishing a deeper on-ground presence in top 25 markets, catering to customers from small-mid-sized businesses to large enterprises.

“Given our prior experience in the space, we observed that the experience of designing and developing an office, especially for a small-mid sized business is far from ideal. The sector is unorganised, opaque and so under-served, that we believe only a tech-led approach can help deliver delightful experience to workspace owners,” Tushar Mittal, founder and CEO of OfficeBanao, said.

Last year, SaaS startup for interior designing, Prolance raised $2 Mn in its Pre-Series A funding round led by Foundamental and Axilor. Prolance helps automate operations in the interior design process including installing furniture, fittings and sending quotes.

Over the last few years, online interior design services are gaining momentum gradually. In India, there are established names such as Homelane, Havenly, Livspace etc that are largely focused on the home interior segment.

According to a report, the country’s interior design industry, which was estimated at $23.2 Bn in 2020, is likely to grow into a $38.2 Bn market by 2027. The industry will grow at a CAGR of 7.4% during 2021-2027.

Meanwhile, OfficeBanao’s funding comes at a time when the Indian startup ecosystem is witnessing low funding, the decline that started a year ago.

According to Inc42’s analysis, Indian startups raised a total of $3 Bn in Q1 2023, down 75% from $12 Bn raised in Q1 2022. Further, the number of deals also declined 58% YoY to 213 from 506 during the quarter under review.

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