HomeLane to Acquire DesignCafe, Targeting ₹1,000 Cr Revenue in FY25

HomeLane, an omnichannel home interior and renovation platform, has announced its intent to acquire DesignCafe, a leading player in India’s home interiors market. The acquisition, which is pending regulatory approval, is set to position the combined entity as one of the largest interior companies in the country. Post-merger, the company is projected to generate revenue of ₹1,000 crore ($120 million) in FY25, a significant 33% increase from the expected ₹761 crore ($92 million) in FY24. The combined entity is also on track to achieve EBITDA profitability.

Despite the acquisition, both HomeLane and DesignCafe will retain their distinct brand identities, along with HomeLane’s existing Doowup brand. Each brand will cater to different market segments, creating a diversified portfolio within the interior design space. The merger is expected to bring significant operational synergies, particularly in design, manufacturing, procurement, and technology. These synergies aim to enhance efficiency, foster innovation, and improve customer satisfaction.

Additionally, HomeLane has successfully raised ₹225 crore ($27 million) in a funding round that included participation from existing investors as well as new backing from Hero Enterprise. This funding brings HomeLane’s total capital raised to $115 million, supported by investors such as Accel, Peak XV, and IIFL.

Co-founders Srikanth Iyer and Tanuj Choudhry of HomeLane shared that the combined entity has already achieved an annual revenue run rate (ARR) of ₹900 crore and is currently cash-positive, with a -2% EBITDA margin. HomeLane continues to serve over 20,000 customers, leveraging a network of more than 1,400 design experts to deliver tailored home interior solutions.

DesignCafe, headquartered in Bengaluru, is known for offering online customized design and décor services. The company has raised close to $30 million in funding. According to TheKredible, HomeLane reported revenue of ₹574 crore in FY23, although it faced a net loss of ₹173 crore during the same period.

Key Highlights:

1. HomeLane to acquire DesignCafe, targeting a combined revenue of ₹1,000 crore in FY25 with improved profitability.
2. Both brands will retain individual identities, focusing on different market segments to drive synergies in design, procurement, and technology.
3. HomeLane raised ₹225 crore in fresh funding, bringing its total investment to $115 million, backed by key investors like Hero Enterprise and Accel.