Bangalore startup HomeLane raises $10 million led by Accel Partners

Moneycontrol news 

Online home furnishing startup HomeLane.com has raised USD 10 million in funding from Accel Partners, Sequoia Capital, and RB Investments, the company said in a statement.

HomeLane provides customisable home solutions to its users, which is typically targeted to serve the mid-level income customers with average budget of Rs 50 lakh to Rs 1.5 crore.

HomeLane plans to deploy the funding to fuel growth and technology innovation, which will in turn help the startup strengthen operations in existing markets in the country.

Founded in 2014, HomeLane has raised about USD 15 million to date in venture funding from investors such as Sequoia Capital, Aarin, Growth Story, and Baring Private Equity.

Last month, the startup also announced acquisition of Capricoast, a Bangalore-based home interiors marketplace, for Rs 90 crore to increase its service offerings.

“This funding round has put us in a formidable position to scale up and capture a larger share of the home design market in all key cities of India,” HomeLane.com co- founder and CEO Srikanth Iyer said.

HomeLane currently has operations in Bangalore, Hyderabad, Chennai, and Mumbai. Recently, it forayed into Delhi-NCR market also. The company now plans to expand its presence to at least 10-12 cities in next three years.

HomeLane, till a few years ago, used to have in-house designers and installers as a delivery model. The cost escalation forced the company to pivot to an asset-light model.

The company, which claims to service over 100 orders a month, said it has reached operational profitability. However, on a company level, HomeLane is still away from profitability. The key growth driver for HomeLane, according to Iyer, has been its SpaceCraft platform, which is a virtual design platform that allows its users to remotely plan and edit a design.