The startup plans to use the funds to expand its presence in the top 10 cities, including new locations such as Chennai and Thane, and its existing market base in Delhi, Mumbai and Hyderabad and the expansion and hiring of products
The home improvement and interior design startup envisions the unorganized and fragmented $ 20 billion industry, which also includes competitors such as Livspace, MS Dhoni-backed Homelane, among others.
Design Cafe previously raised $ 28.5 million (INR 200 Cr) in 2018, bringing the total Series B funding to $ 53.5 million (INR 366 Cr)
Bengaluru-based online interior design startup Design Cafe has raised an additional $ 25 million (approximately INR 166 Cr) in its extended Series B cycle, led by existing investors WestBridge Capital and Fireside Ventures. Sixth Sense Ventures and new family offices also participated in the round, bringing the total Series B funding to $ 53.5 (approx. 366 Cr INR).
The funds will be used to expand its presence in the top 10 cities, including new locations such as Chennai and Thane, and its existing market base in Delhi, Mumbai and Hyderabad. The startup plans to increase its gross annual booking rate to INR 600-700 Cr over the next 24 months, focusing more on its growth in the Home segment.
“We are on the cusp of a change in interior space and home improvement in India and we are excited to be working to create a brand that will have a significant impact on the entire ecosystem. This includes providing better homes for customers and greater opportunities for designers and trade professionals, ”said Shezaan Bhojani, co-founder of Design café. “The funds raised will allow us to offer our services and products in more markets and to invest more in technology and people. “
Founded in 2011 by Gita Ramanan and Shezan Bhojani, Design Cafe has already raised $ 25 million in Series B in 2018, to finance expansion to Mumbai, Delhi-NCR and Hyderabad. Inc42 also exclusively reported that the startup raised 24.99 Cr INR during a bridge round in 2020.
The startup, which was a traditional design company until 2015, is now an online marketplace of its designers, workforce, and a factory in Bangalore making all of its products.
In the online home interiors arena, Design Cafe primarily competes with Homelane, backed by MS Dhoni, which recently raised $ 50 million in a Series E funding round led by tech fund from advanced stage of IIFR AMC, OIJIF II (Oman India Joint Investment Fund) and investor Stride Ventures. Livspace, Urban Ladder and Pepperfry are other players in the field of interior design and interior design.
Design Cafe claims to be close to breaking even, with an Annual Income Rate (ARR) of INR 180 Cr.
Since the start of the pandemic, there has been a dramatic shift in shopping habits as people prefer to order everything – from food to furniture – online. The global online interior design market, valued at $ 98.4 billion in 2020, is projected to reach $ 348.3 billion in markets by 2030.
Of the $ 98.4 billion global markets, India is an unorganized and fragmented $ 20 billion market with a expected 7% CAGR. Similar growth is also expected in India’s online furniture interiors market.