Omnichannel home interior and renovation platform HomeLane has announced plans to acquire DesignCafe, a prominent player in the home interior market. The acquisition, pending regulatory approval, is set to create one of India’s largest interior design companies, positioning the combined entity for rapid growth.
Post-acquisition, the merged business is projected to achieve Rs 1,000 crore (approximately $120 million) in revenue for FY25, a significant 33% jump from its Rs 761 crore ($92 million) in FY24. The company is also expected to become EBITDA profitable, marking a milestone in operational efficiency. HomeLane, along with Doowup and DesignCafe, will continue to operate under distinct brands, each targeting different segments of the home interior market.
In addition to the acquisition, HomeLane has secured Rs 225 crore ($27 million) in a new funding round, attracting investments from both current backers and Hero Enterprise as a new partner. This round will help fuel the integration process and enhance capabilities across the combined entity.
The acquisition is expected to generate synergies in key areas like manufacturing, design, procurement, and technology, ultimately driving customer satisfaction and business innovation. With improved operational efficiencies, HomeLane aims to leverage DesignCafe’s strengths to better serve India’s growing home interior market.
Commenting on the deal, co-founders of HomeLane, Srikanth Iyer and Tanuj Choudhry, stated that the entity’s current annual revenue run rate (ARR) stands at Rs 900 crore, and the company is already cash profitable, operating at a -2% EBITDA.
Founded in Bengaluru, HomeLane has over 1,400 design experts and has delivered services to more than 20,000 customers. The company has previously raised $115 million from investors including Accel, Peak XV, and IIFL. DesignCafe, also based in Bengaluru, offers online customized design and décor services and has raised around $30 million to date.
This strategic acquisition marks a major step in HomeLane’s journey to consolidate its position in the competitive home interior space while scaling its operations and service offerings across India.
