Indian-based home solutions startup HomeLane is planning to secure $50 million in a new round of funding which is expected to be participated by its existing investors US venture capital firm Sequoia Capital. In February this year, Sequoia along with Aarin Capital had invested $4.5 million.
The startup HomeLane sells customized kitchens, wardrobes and entertainment units. The company stands apart from the rest of the ecommerce players as it focuses on modular, fixed furniture that does not deal with smaller furniture but big units which bills to around $2500 dollars and delivers the furniture in 45-day time whereas most of the other ecommerce deals with movable furniture.
Founded in 2014 by K Ganesh and Meena Ganesh, the startup’s team has Srikanth Iyer as co-founder and CEO, who was the former CEO of Pearson and his former colleague Rama Harinath who assists the company’s clients with customizable furnishing solutions. The founders acquired a design firm Bello Interiors Pvt Ltd and rebranded it to HomeLane which allows its customers from choosing the designs and fixtures and take care for its last-mile delivery.
Iyer said, “We believe the addressable market size in India in $10 billion. A million homes are being handed over across the top ten cities in the country this year alone. We want to become a national brand. We are hitting 100 orders a month in Bengaluru. With $10 million annualized run rate in one city in one year, it could be $1 billion across ten cities.” He also added, “We are in an initial stage of discussion with investors for a fund raise. Our existing investors Sequoia continue to be supportive of our fund raise plans”
Homelane plans to use the new funds to expand its operations in ten metros including Mumbai and Delhi this year. For now, it operates in Bangalore, Pune, Hyderabad, Kochi and Chennai. HomeLane has recently partners with promoters and developers in Bengaluru that includes Vakil, ETA Star and Citrus Ventures. It also has plans to improve and implement the technology related items like 3D visualization, project management and a mobile app.
With the recent development and growth in the home furnishing solutions, the investors are ready to put money into various firms in the space. Recently, home furnishing online retailers like Urban Ladder, FabFurnish, CustomFurnish, Pepperfry and LivSpace received funding from various investors. It is such a welcoming sign.
Managing Director of Sequoia Capital India Advisors said, “HomeLane has made tremendous progress since we first invested and business is much ahead of plan. We are seeing significant inbound interest from investors. We remain committed to partner with HomeLane to fundamentally change the way this industry functions and provide a better experience to the consumer.”