HomeLane, a leading omnichannel home interior and renovation platform, has announced its plans to acquire DesignCafe, another key player in India’s home interiors market. Once the acquisition, pending regulatory approval, is finalized, the combined entity will form one of the largest interior companies in India. The merger is expected to drive revenue to Rs 1,000 crore ($120 million) in FY25, a 33% increase from Rs 761 crore ($92 million) in FY24, with the goal of becoming EBITDA profitable.

Despite the acquisition, HomeLane, Doowup, and DesignCafe will continue operating as distinct brands, each serving different market segments. Alongside this move, HomeLane also announced a Rs 225 crore ($27 million) funding round, which includes investments from current backers and new funding from Hero Enterprise.

The acquisition will unlock significant synergies in manufacturing, design, procurement, and technology, which will enhance operational efficiency and innovation, ultimately improving customer satisfaction. HomeLane’s co-founders Srikanth Iyer and Tanuj Choudhry noted that the combined entity already reports an annual revenue run rate (ARR) of Rs 900 crore and has reached cash profitability with a -2% EBITDA.

HomeLane, which offers interior solutions through its 1,400 design experts and serves over 20,000 customers, had previously raised $115 million from investors including Accel, Peak XV, and IIFL. The company recorded a revenue of Rs 574 crore in FY23, despite a loss of Rs 173 crore. Bengaluru-based DesignCafe, known for its online customized design and decor services, has raised nearly $30 million to date.

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