HomeLane, which is backed by the likes of Evolvence, Sequoia, Accel, JSW Ventures, and MS Dhoni, did not provide the name of the investors who participated in the funding round
HomeLane, which reported a net loss of INR 153 Cr in FY22, said it is on track to become profitable in FY24
Amid the ongoing funding winter, HomeLane and its rival LivSpace laid off employees earlier this year
Home interior solutions startup HomeLane said it closed a bridge round of INR 75 Cr (about $9.1 Mn) from its existing investors to help accelerate its growth trajectory and support expansion plans.
HomeLane did not disclose the names of investors who participated in the funding round. However, it is backed by the likes of Evolvence, NuVentures, Sequoia, Accel, JSW Ventures, Mohandas Pai, and MS Dhoni.
The startup told Inc42 that the funding was raised via convertible notes.
The development comes a month after a report said that HomeLane’s competitor LivSpace was in talks to acquire the company. Responding to Inc42’s query on this, HomeLane rejected the report.
“The claims suggesting an acquisition between LivSpace and HomeLane is just speculation. HomeLane continues to stay focused on its standalone strategic goals,” it said.
HomeLane had last raised a Series E funding of $50 Mn (INR 371 Cr) from IIFL AMC’s late-stage tech fund, OIJIF II (Oman India Joint Investment Fund) and its existing investor Stride Ventures in September 2021.
Commenting on the funding, HomeLane cofounders Srikanth Iyer and Tanuj Choudhry said in a statement, “This bridge round represents an important milestone for HomeLane, providing us with the resources to further scale the delivery of exceptional home interior solutions to our customers.”
Founded in 2014 by Iyer, Rama Harinath, and Vivek Parasuram, HomeLane offers personalised tech-enabled end-to-end interior services.
Through its technological interventions, tech-empowered expert designers, and project managers, the company claims to have built a community of over 30,000 customers across the country. HomeLane currently services over 22 cities across India through more than 50 experience centres.
The startup said that the latest capital infusion significantly strengthens its financial position, empowering it to aggressively pursue growth opportunities in the existing 22 cities. Additionally, the funding will also enable the scale-up of HomeLane’s recently launched affordable segment brand, Doowup.
It must be noted that HomeLane is targeting to become the first profitable company in the home interiors space. The startup said it is on track to achieve profitability in FY24, expectedly by September 2023.
However, in FY22, HomeLane’s standalone net loss widened to INR 153.05 Cr from INR 102.38 Cr in FY21 as its expenses rose in line with its business growth. Its operating revenue in the year grew to INR 426.13 Cr from INR 275.69 Cr in the prior fiscal year.
The startup also laid off 30-40 employees in March this year in a restructuring exercise. In the same month, Inc42 exclusively reported about LivSpace also laying off nearly 100 employees.
However, HomeLane said that its revenue in FY23 grew 35% year-on-year to INR 580 Cr .
“For the month of March ‘23, we ended strong with zero cash burn and -5% EBITDA. Our made-to-order business model means that customer payments are received in advance of revenue recognition, putting cash burn ahead of EBITDA burn,” the startup said.