Sequoia-backed online home furnishing market place Homelane.com has gulped in an an additional $50 million (Rs 315 crore) by investment from existing investors, Sequoia Capital and others.
The Bengaluru based startup was founded in mid-2014 by former Pearson CEO and founder of Edurite, Srikanth Iyer, along with a former colleague Rama Harinath who is an alumnus of IIT- Chennai and IIM-Bangalore.
It raised seed funding from serial entrepreneur duo Meena and K Ganesh at its inception and this February, raised another US $4.5 million in Series A funding led by Sequoia Capital with participation from Mohandas Pai’s Aarin Capital.
Homelane.com provides its customers with customizable home solutions including kitchens, wardrobes, entertainment and vanity units. Specifically targeted towards the mid-income Indian customers who typically have a budget of around 50 Lakh- 1.5 Crore to own and furnish a house, Homelane provides the design options as well as setup and execution services to its customers.
Customers can select designs, fixtures and customized fittings, while Homelane is responsible for last-mile delivery. It offers customers a 45-day delivery guarantee; else it pays customers rent for delayed delivery.
Sequoia Capital which has backed companies like Just Dial, Mu Sigma, Freecharge and Zomato is one of the top investors in India’s thriving startup ecosystem and has invested in 100-plus companies across sectors such as tech, healthcare, consumer and financial services since it began its operation in India in 2006.
Talking about their latest investment, G V Ravishankar, MD in 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.
Homelane aims to capture the unorganized and inefficient home setup market with its technology led design, manufacturing and installation services that guarantee timely and cost effective delivery for the consumer.
Srikant Iyer, one of the co-founders says,
We believe the addressable market size in India is $10 billion. A million homes are being handed over across the top ten cities in the country this year alone.
Currently present in Bengaluru, Pune, Hyderabad, Kochi and Chennai, Homelane now has plans to expand its operations to 10 metros including Mumbai and Delhi this year.
“We want to become a national brand. We are hitting 100 orders a month in Bengaluru. With a Rs 60-70 crore annualized run rate in one city in one year, it could be Rs 600 crore across ten cities,” added Iyer.
Homelane has also tied up with some of the developers in Bengaluru including Vakil, ETA Star and Citrus Ventures and deploying a part of the fresh funds to enhance its tech play that includes 3D visualization, project management and a mobile app.
However Homelane is not the sole company vying to carve a niche in the home furnishing market which has recently emerged as an attractive market for entrepreneurs and investors alike.
For instance, last year, another Bengaluru based home design and décor setup LivSpace raised Rs 29 crore from Helion Venture Partners, Bessemer and Jungle Ventures and in the same year, Ratan Tata too made a personal investment in furniture e-retailer Urban Ladder which had earlier received $21 million in Series B round of funding led by Steadview Capital.