HomeLane Acquires DesignCafe: Merging India's Interior Design Leaders

In a significant move for the Indian interior design sector, HomeLane, a tech-enabled interior design company, has acquired DesignCafe in a 100% share swap deal. The merger, valuing the combined entity at INR 3,000 crore, aims to create the largest player in India's home interiors industry by project volume.

• HomeLane's parent company, Homevista Decor and Furnishings Private Limited, which also owns Doowup, Cubico, and Wrapzap, will integrate DesignCafe.
• The acquisition is subject to regulatory approval.
• Both companies will maintain their individual brand identities, catering to different market segments.

Synergizing Operations for Growth

The merger is expected to generate significant synergies in key operational areas like manufacturing, design, procurement, and technology. The combined entity plans to leverage these synergies to enhance innovation, operational efficiency, and customer satisfaction.

• The deal is projected to propel the combined entity's revenue to INR 1,000 crore by FY25, a substantial 33% increase from INR 761 crore in FY24.
• The merged entity aims to become EBITDA profitable.

HomeLane's Co-founders Highlight the Potential of the Merger

Srikanth Iyer and Tanuj Choudhry, Co-founders of HomeLane, expressed their excitement about the acquisition, stating that combining HomeLane's tech-driven approach with DesignCafe's design expertise will create a powerhouse in the home interiors industry.

• The combined entity is already at a revenue ARR of INR 900 crore.
• It is cash profitable and has -2% EBITDA.

DesignCafe's Co-founders Share Their Vision

DesignCafe's Co-founders, Gita Ramanan and Shezaan Bhojani, emphasized their commitment to democratizing design for Indian homeowners. They are excited to continue their journey with HomeLane and jointly build India's most-loved house of interior brands.

HomeLane Secures INR 225 Crore Funding

Alongside the acquisition, HomeLane announced a INR 225 crore fundraising round, featuring contributions from existing investors of both HomeLane and DesignCafe, as well as an external investment from Hero Enterprise.

• Sunil Kant Munjal, Chairman of Hero Enterprise, expressed confidence in HomeLane's business model and its potential for innovation and growth.

About HomeLane and DesignCafe

Founded in 2014, HomeLane has emerged as India's leading tech-enabled interior design brand, delivering over 45,000 projects across 30 cities through 60+ Experience Centers.

• DesignCafe, established in 2016, is known for its high-quality, affordable interior design solutions, having designed over 15,000 homes across India.

The Merger: A Defining Moment for India's Home Interiors Industry

The merger of HomeLane and DesignCafe signifies a significant step forward in shaping the future of India's home interiors industry. The combined entity is poised to leverage technology, design expertise, and operational efficiency to offer homeowners in India a wider range of high-quality and affordable interior design solutions.