Indian based e-tailer BedBathMore has announced its acquisition of Crude Area, an art and graphic based e-commerce startup for an undisclosed amount. It is an all-stock, acqui-hire deal which means the whole team of Crude Area including its founders will now be a part of the BedBathMore.com.
Founded in 2012, the Crude Area startup worked with an aim to transform the graphic art into home decor and lifestyle products like wall art, mugs, floor mats, coasters and many more. The graphic art company has been incubated by Sidharth Rao, founder of Webchutney and had has raised funds from investors like Sachin Bhatia, co-founder of MakeMyTrip and CEO, TrulyMadly. Crude Area will have an independent white area on the portal.
Rao said, “Coincidentally I also wanted to move beyond just Wall Art and other categries of home decor as a private label, which tied in with BedBathMore.com’s strategy. BedBathMore.com is moving towards a more holistic and horizontal space to become a one-stop destination for everything home. From ideas, to products and services, the search for anything home ends at BedBathMore. Crude Area was a natural fit in Bed Bath More’s offering.”
The home-furnishing and decor sector e-commerce sector has been estimated to value around $9 billion and its experiencing three digit growth rate of 215%.
BedBathMore, with the acquisition, will receive a further advancement in the hyper-competitive Indian e-commerce space and plans to expand its own-brand offerings. The acquisition is part of the company’s strategy to grow into a marketplace cum- aggregator model to target on the content, community and e-commerce with a long-term plan to become the top and one stop shop to buy any home needs. A month ago, the company acquired Homado, a platform for interior designers to go beyond ecommerce and launch a community-driven platform of 3000 architects and interior designers.
Founder and managing director of BedBathMore.com, Amit Dalmia said, “Crude Area has built a robust model of identifying art-based products and we are sure it will add value to our overall effort of offering unique and differentiated products, As a business, wall art and private label extension in decor and furniture has been a vision for BedBathMore.com and the move ties in with our expansion plan and our acqui-hire strategy.”
The 18-month old startup, BedBathMore is almost in the last phase of raising $5 – $10 million from current and new investors. It plans to use the newly raised fund to improve its technology, increase the team members and expand globally. The startup is not free from competition. It competes with FabFurnish, PepperFry and others besides the horizontal e-commerce firms. Rocket Internet is also part of the race that allows users to take pictures of the room and drag and drop furnitures to ensure how it would look in their house. Couple of years ago, the company raised funds in its seed stage from Blume Ventures.