Home interior solutions startup Design Café bags $25 million in funding

Home interior solutions startup Design Café bags $25 million in funding


Home interior solutions startup Design Café has raised $25 million (Rs 166 crore) as part of its extended Series B round.

The funding was led by existing investors WestBridge Capital and joined by Sixth Sense Ventures, the company said.

Early investor Fireside Ventures also participated in the round along with a few family offices.

This takes its total Series B funding to Rs 366 crore, including Rs 200 crore it raised in 2018.

The company said it will use the funding for expansion into newer cities. It plans to be present in the top 10 cities over the next 18 months.

Founded in 2015 by Gita Ramanan and Shezan Bhojani, Design Café has a vertically integrated business model, with its own designers, workforce, and a factory in Bengaluru manufacturing all its products.

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It currently operates in Bengaluru, Mumbai and Hyderabad, with new centres set to be launched in Chennai and Thane. “The company is also planning to open more experience centres in Bengaluru,” it said in a statement.

“The funds will allow us to take our services and products to more markets, and invest further in technology and people,” chief executive Bhojani said.

Design Café is nearing break even and its annual revenue run rate is around Rs 180 crore, it said.

The company plans to grow its gross annual booking rate to Rs 600-Rs 700 crore over the next 24 months. A large part of this, the company said, will come from growth in the Home segment, which it believes can be a billion-dollar opportunity.

“We believe that home interiors and improvement is a very large opportunity in India and the problem that Design Cafe addresses is a real consumer need today,” said Sandeep Singhal, cofounder and managing director, WestBridge Capital.

Home improvement and design is a $20 billion industry which is completely fragmented and unorganised in India.

“Profitability in this industry has always been a challenge, but Design Cafe’s increased focus on standardised modular furniture, vertically integrated manufacturing, and a full-stack tech platform, will enable the business to achieve economies of scale,” said Nikhil Vora, founder and CEO of Sixth Sense Ventures.



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