HomeLane Raises $30 Million From Evolvence India Fund, Pidilite Group And Others
HomeLane, a home interiors company, on Monday said it has raised $30 million (about Rs 213 crore) in funding led by new investors Evolvence India Fund, Pidilite Group and FJ Labs.
The series D round also saw participation from Sequoia Capital, Accel Partners and JSW Ventures. With the current round, the total funding raised by HomeLane stands at $46 million.
The current round is estimated to value the company at $150-250 million.
"We will use the funds for three things - for our next phase of growth that will include launching renovation as a category; scaling our proprietary design-to-manufacturing platform to more designers, vendors and installers; and expanding to 8-10 new cities in India," HomeLane founder and Chief Executive Officer Srikanth Iyer told PTI.
He added that part of the funding will also be deployed towards technology to improve experience and efficiency for consumers and design partners.
"This investment is very timely for the company, considering we are closer to EBITDA (earnings before interest, tax, depreciation and amortisation) profitability, and will be used for growth, brand and technology," he said.
The company plans to ramp up its experience centres from the current 16 to 30 by the end of 2020. It also intends to hire 300-400 people to take its headcount to about 1,400 over the next one year.
Founded in 2014, HomeLane.com has a presence in Bengaluru, Chennai, Hyderabad, Mumbai, National Capital Region, Kolkata and Pune. It is looking at expanding into cities like Coimbatore, Vizag and Jaipur, among others.
Iyer said India's home interiors market (worth about $18 billion) has massive untapped potential.
"With this round of investment and such an accomplished group of investors, we will double-down on establishing our brand across existing and new markets. We will exit fiscal year 2020 at an average revenue run rate of Rs 700 crore and are on track to getting to company-wide profitability in early FY21," he added.
The RainMaker Group acted as the sole financial advisor to the company.
In a BSE filing, Pidilite Industries said its wholly-owned subsidiary, Madhumala Traders has agreed to make an investment of Rs 49 crore in Homevista Decor and Furnishings (HomeLane) by subscribing to series D2 cumulative compulsorily convertible preference shares.
The said shares, on conversion, would translate to over 5 percent of the issued and paid-up share capital of HomeLane.com (on a fully diluted basis).
The nature of subscription will be cash, and is being done at a mutually agreed pre-money enterprise valuation that has not been disclosed due to reasons of confidentiality, the filing said.
"As an organisation, we continuously track the development of the startup ecosystem in adjacent areas and relevant geographies. We intend to make strategic financial investments in relevant startups and support and collaborate with these startups for mutual benefit," Pidilite said.