HomeLane raises INR 225 Cr from Hero Enterprise and WestBridge, set to buy Design cafe

HomeLane is set to acquire Design Café in a share swap transaction for an undisclosed sum, while securing ₹225 crore in fresh funding from investors including Hero Enterprise and WestBridge Capital to fuel its expansion.
The combined entity, which will be valued at about ₹3,000 crore (about $360 million), is expected to be Ebitda profitable and generate a revenue of ₹1,000 crore in 2024-25, the companies said in a statement. Currently, the two entities have a combined revenue of about ₹900 crore.
Ebitda, or earnings before interest, tax, depreciation, and amortisation, is a key metric of operational efficiency.
While the combined entity will cater to a more niche premium target market, HomeLane, Design Café and HomeLane’s affordable home interiors division, Doowup, will continue to operate as distinct brands, catering to different segments of the market, according to the statement.
The new capital is also expected to fund HomeLane’s expansion into new markets, including tier 2 cities, where it is seeing rising demand.
“Our investment reflects confidence in their (HomeLane) business model and it also presents meaningful synergies with Hero Realty. We look forward to seeing the innovation and growth that this partnership will bring,” Sunil Kant Munjal, Chairman, Hero Enterprise, said in the statement.
The combined entity will use a tech-driven approach and leverage Design Café’s design expertise, Tanuj Choudhry and Srikanth Iyer, Cofounders, Homelane said in the statement.
Source: livemint.com