Bengaluru (Karnataka) [India], September 9 (ANI/BusinessWire India): HomeLane, India's choice for on-time home interiors, has announced a USD 50 M (INR 371 crores) Series E funding round today, led by IIFL AMC's Late-Stage Tech Fund, OIJIF II (Oman India Joint Investment Fund), and Stride Ventures.
Existing investors Pidilite, Evolvence, NuVentures, Sequoia, and Accel also participated in this round of fundraising. With the current round of funding, HomeLane has raised more than USD 104 M (INR 765 crores) in funds over the last 7 years.
The latest round of funding will be used to establish HomeLane as the leading brand in the organised interiors category by accelerating the company's strategic expansion into newer markets and investing further in technology to strengthen its consumer-first approach. Deeper investments in brand-building initiatives are also expected to see a significant boost by the company. The new funding will help HomeLane accelerate its growth, with revenue targets of Rs 2500 crores by FY24.
It has been a spectacular year for the end-to-end interiors brand, despite the challenges of the pandemic. HomeLane's tech and asset-light model allowed the company to scale and record cash profitability in November 2020, making it the only startup in the home interior segment to be so.
Growing consumer demand for branded interior services, reduction in fixed costs, increase in average order value, and bundling of supplementary services to its flagship home interior offerings helped the company make its business operations agile. Being able to meet customers virtually has also helped the company become resilient to the challenges thrown up by the current pandemic.
Commenting on the funding, Srikanth Iyer and Tanuj Choudhry, Co-Founders, HomeLane said, "We are excited to have IIFL AMC, OIJIF II and Stride Ventures on board, and grateful that our existing investors have continued to express confidence in our growth potential and vision. We look forward to consolidating our position as a leading player in the home interiors segment in India with greater reach, better technologies, and a seamless customer experience."
Commenting on the investment, Chetan Naik - Fund Manager, Private Equity at IIFL AMC, said, "HomeLane is at the forefront of digitization of Home Interiors space which has largely been an unorganised play. With HomeLane's design expertise, technology and efficient process, they have shown a strong ability to provide a predictable and consistent experience to customers. HomeLane has been highly capital efficient and has been able to achieve cash profitability which is a first in the category. The Founders - Srikanth and Tanuj bring in exceptional execution skillsets, making HomeLane well positioned to be a beneficiary of growing momentum in Home Improvement space."
Speaking about the funding, Srinath S, CEO OIJIF AMC, said, "As homes continue to be the centre of everything, there has been an increased momentum in the home interiors category. Backing HomeLane is our vote of confidence in their technological innovation leading to rapid scale, customer-centric approach to solving problems, and most importantly the strong team led by Srikanth & Tanuj. This is evident in the kind of traction that they have gained even in the midst of a pandemic."
The RainMaker Group acted as the sole adviser on the transaction.
Other existing marquee investors include JSW Ventures, Growth Story, Aarin Capital, Baring Private Equity Partners, RB Investments & BCCL.
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