Homevista Decor & Furnishings, the parent company of interior brands HomeLane, Doowup, Cubico and Wrapzap, today announced its offer to acquire DesignCafe, a 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 Rs 1,000 crore in FY25, up 33 per cent 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.
"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 Rs 900 crore is cash profitable and at -2 per cent 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 and continue to be a part of this journey.”
In conjunction with this acquisition, HomeLane also announced a Rs 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, 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."
