Bengaluru, (Karnataka) [India], 26th 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 a revenue of ₹1,000 crore 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 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 ₹900Cr, is cash profitable and at -2% EBITDA.”
Gita Ramanan and Shezaan Bhojani, Co-Founders of DesignCafe, added, “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.
“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 Interior space,” said Sandeep Singhal, managing partner of Westbridge 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 225 Crore Fundraising Round
In conjunction with this acquisition, HomeLane also announced a ₹225 crore 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 highlights 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.”
About HomeLane
Established in 2014, HomeLane has grown into India’s leading tech-enabled home interiors brand, providing end-to-end interior services in a personalised, professional manner. It operates four brands – HomeLane, Doowup and Cubico (corporate interiors) & Wrapzap. With a strong focus on technology and customer satisfaction, HomeLane has successfully delivered over 45,000 customers across 30 cities through its 60+ Experience Centres.
About DesignCafe
A leading home interiors brand in India, DesignCafe was founded in 2016 by Gita Ramanan and Shezaan Bhojani, with a vision of offering highly innovative home interior solutions at affordable prices, thus democratising design in India. With over 15,000 homes designed and delivered across the country, the company is known for its high-quality, personalised interior design services that cater to a wide range of customers. The brand has received numerous awards and continues to expand its presence nationwide.
