Secures ₹225Crore in New Funding Round, Set to achieve ₹1,000Crore Revenue in FY25 with EBITDA Profitability
Bengaluru 25 September 2024: Homevista Decor & Furnishings Private Limited, the parent company of interior brands HomeLane, Doowup, Cubico and Wrapzap, today announced its offer to acquire DesignCafe, a prominent player in the home interiors market. This acquisition, subject to regulatory approvals, will result in the creation of the largest entity in the interiors category in India, in terms of projects delivered.
Post-acquisition, the combined entity is expected to achieve are venue of ₹1,000crore in FY25, up 33% from Rs. 761 crore in FY24, and be EBITDA profitable. HomeLane, Doowup and DesignCafe will continue to operate as distinct end-to-end interiors brands, each catering to different segments of the market.
Strategic Synergies to Drive Growth and Profitability
The acquisition is poised to unlock significant synergies across areas such as manufacturing, design, procurement, and technology. These synergies will not only enhance operational efficiency but will also drive innovation and customer satisfaction across the combined entity’s offerings.
“We are incredibly excited and see immense potential in combining our tech-driven approach with DesignCafe’s design expertise, to create a true power house in the home interiors industry,” said Srikanth Iyer and Tanuj Choudhry, Co-Founders of HomeLane. “The combined entity is already yata Revenue ARR of ₹900Cr,is cash profitableandat – 2%EBITDA.”
Gita Ramanan and Shezaan Bhojani, Co-Founders of DesignCafe,added, “Joining forces with HomeLane propel sour vision of democrat is ingdesign for Indian home owner seven further. We are thrilled to continue our journey to gether with HomeLane, and look forward to jointly building India’s most-loved house of interior brands.
“I believe that this transaction marks the start of an exciting chapter, as it brings together two strong teams that are now the clear leaders in the Home Interiorspace,”said Sandeep Singhal, managing partner of West bridge Capital and investor in DesignCafe. “Both teams have shown strong execution in the past, and together, we believe that they will deliver industry-leading performance for all stakeholders. We are excited to invest in & continue to be a part of this journey.”
INR 225Crore Fundraising Round
In con junction with this ac quisition, HomeLane also announced a ₹225crore funding round. This round features contributions from both existing investors of HomeLane and DesignCafe, as well as external investment from Hero Enterprise.
The participation of Hero Enterprise highlightts their strong confidence in the strategic vision and growth potential of the combined entity. Commenting on the investment, Mr. Sunil Kant Munjal, Chairman of Hero Enterprise, said, “We are delighted to support HomeLane in this ambitious expansion. Our investment reflects confidence in their business model and it also presents meaningful synergies with Hero Realty. We look forward to seeing the innovation and growth that this partnership will bring.”
