HomeLane Merges with DesignCafe in 100% Share Swap Deal, Backed by INR 225 Cr Fundraising The combined entity also raised INR 225 crore in funding from existing investors of HomeLane and DesignCafe, as well as an external investment from Hero Enterprise.
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HomeLane, a tech-enabled interior design company, announced its acquisition of DesignCafe in a 100% share swap deal, valuing the merged entity at inr 3,000 crore.
HomeLane's parent company, Homevista Decor and Furnishings Private Limited, which also owns Doowup, Cubico, and Wrapzap, will integrate DesignCafe to create the largest entity in India's interior design sector by project volume.
The acquisition is subject to regulatory approval and will see both companies maintain their individual brand identities. HomeLane, Doowup, and DesignCafe will continue to operate as distinct brands catering to different market segments, allowing for specialisation and customer satisfaction.
The deal is expected to propel the combined entity's revenue to INR 1,000 crore by FY25, a significant 33% increase from INR 761 crore in FY24, with projections of becoming EBITDA profitable.
This strategic acquisition is anticipated to generate significant synergies in key operational areas such as manufacturing, design, procurement, and technology. The merged entity aims to leverage these synergies to boost innovation and operational efficiency, enhancing overall customer satisfaction.
"We are incredibly excited and see immense potential in combining our tech-driven approach with DesignCafe's design expertise to create a true powerhouse in the home interiors industry," said Srikanth Iyer and Tanuj Choudhry, Co-founders of HomeLane. "The combined entity is already at a revenue ARR of INR 900 crore, is cash profitable, and has -2% EBITDA."
DesignCafe's Co-founders, Gita Ramanan and Shezaan Bhojani, said, "Joining forces with HomeLane propels our vision of democratising design for Indian homeowners even further. We are thrilled to continue our journey together with HomeLane and look forward to jointly building India's most-loved house of interior brands.
Alongside the acquisition, HomeLane announced an INR 225 crore fundraising round, featuring contributions from existing investors of both HomeLane and DesignCafe, as well as an external investment from Hero Enterprise.
Hero Enterprise's Chairman, Sunil Kant Munjal, said, "Our investment reflects our confidence in HomeLane's business model and its potential for innovation and growth."
Founded in 2014, HomeLane claims to have become India's leading tech-enabled interior design brand, delivering over 45,000 projects across 30 cities through 60+ Experience Centers.
DesignCafe, founded in 2016, is known for its high-quality, affordable interior design solutions, having designed over 15,000 homes across India. The merger represents a significant step forward in shaping the future of India's home interiors industry.
