Bengaluru-based tech-enabled company HomeLane that provides interior designing solutions said Monday it has raised USD 30 million in its Series D round led by new investors including PE firm Evolvence India Fund (EIF), Pidilite Group, and FJ Labs. Existing investors such as Sequoia Capital, Accel Partners, and JSW Ventures also participated in this round.
The company had raised USD 4.6 million in a bridge round in February this year. With the current round, total funding raised by HomeLane stands at USD 46 million.
The latest funding will be used to pump up its next phase of growth. The company said it will get more designers and vendors on its platform as well as start offering renovation services. It aims to expand to 10 cities from the current seven cities in India.
“With this investment, we will accelerate our expansion into newer markets, while further penetrating our current ones. We will also build a world-class offering for the ISD 12 billion home renovation market,” Srikanth Iyer, founder and CEO, HomeLane, said in a statement.
A good chunk of the investment, the company said, will go towards enhancing the capabilities of its 3D design platform SpaceCraft, which it launched in 2017. Using artificial intelligence and augmented reality, SpaceCraft provides real-time design rendering of houses and designs to users.
“Our focus on technology to improve both experience and efficiency for our consumers and design partners will continue, with significant investments in people and products,” Iyer said.
HomeLane said its products and services are relevant to the middle-market segment and is limited to geographies. The company claimed it will soon reach profitability based on EBITDA (Earnings before interest, tax, depreciation, and amortization).
“With this round of investment and such an accomplished group of investors, we will double-down on establishing our brand across existing and new markets. We will exit FY (financial year) 2020 at an ARR (annual recurring revenue) of INR 700 crore (USD 98 million) and are on track to getting to company-wide profitability in early FY 21,” said Tanuj Choudhry, chief business officer, HomeLane.
The company competes with online-to-offline interior designing startup LivSpace that raised an undisclosed amount of money from Swedish furniture giant Ikea’s investment arm, Ingka Investments. The five-year-old Hyderabad-based startup is in advance talks to raise USD 100 million at a valuation of USD 500 million.