Live
- Mahayuti allies go into huddle to pick Maha CM
- Rachakonda police issues prohibitory orders in view of TGPSC tests
- SBI rescues sr citizen from `46L cyber fraud
- 12-yr-old dies of electrocution
- Installation of smart meters opposed
- State Cabinet expansion in focus as CM leaves for Delhi
- Need to reintroduce country’s forgotten pride: Bhagwat
- Pant shatters Iyer's IPL auction record, sold to Super Giants for Rs 27 cr
- Yuva Sangeetha Sammelanam held
- Dharani proves a bane for 25K families across State
HomeLane to Acquire DesignCafe, Creating Combined Entity Worth Rs 3,000 Crore
Secures Rs 225 Crore in New Funding Round, Set to achieve Rs 1,000 Crore Revenue in FY25 with EBITDA Profitability
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."
