HomeLane, an omnichannel platform for home interior and renovation, has announced its intention to acquire DesignCafe, a prominent participant in the home interior market.
The acquisition, which is currently pending regulatory approval, is anticipated to be one of the greatest interior companies in India.
The combined entity is expected to generate a revenue of Rs 1,000 crore ($120 million) in FY25, a 33% increase from Rs 761 crore ($92 million) in FY24, and to attain EBITDA profitability following the acquisition. DesignCafe, Doowup, and HomeLane will continue to function as distinct entities, each of which will serve distinct market segments.
HomeLane also disclosed a Rs 225 crore ($27 million) funding round, which comprises investments from previous supporters of both HomeLane and DesignCafe, as well as new funding from Hero Enterprise.
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HomeLane stated in a press release that the acquisition is expected to generate substantial synergies in technology, procurement, design, and manufacturing. This will improve operational efficiency and foster innovation and customer satisfaction throughout the combined entity’s product line.
The combined entity, which is cash profitable and has a -2% EBITDA, is already at a revenue ARR of Rs 900 crore, according to Srikanth Iyer and Tanuj Choudhry, co-founders of HomeLane.
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