Homevista acquires DesignCafe, raises Rs 225 cr

New Delhi: Homevista Decor & Furnishings on Wednesday announced the acquisition of home interiors player DesignCafe and raising Rs 225 crore fund from investors as part of its expansion plan.

Homevista Decor and Furnishings is the parent company of interior brands HomeLane, Doowup, Cubico and Wrapzap.

This acquisition, subject to regulatory approvals, will result in the creation of the largest entity in the interiors category in India, in terms of projects delivered, the company said in a statement.

Post-acquisition, the combined entity is expected to achieve a revenue of Rs 1,000 crore in FY25, up 33% from Rs 761 crore in FY24, and be EBITDA profitable.

HomeLane, Doowup and DesignCafe will continue to operate as distinct end-to-end interior brands, each catering to different segments of the market.

The acquisition will help unlock significant synergies across areas such as manufacturing, design, procurement and technology.

"We are incredibly excited and see immense potential in combining our tech-driven approach with DesignCafe's design expertise, to create a true powerhouse in the home interiors industry," said Srikanth Iyer and Tanuj Choudhry, Co-Founders of HomeLane.

The combined entity is already at a Revenue ARR (annual run rate) of Rs 900 crore, is cash profitable and at (-)2% EBITDA.

HomeLane also raised Rs 225 crore.

"This round features contributions from both existing investors of HomeLane and DesignCafe, as well as external investment from Hero Enterprise," the statement said.