Sequoia-backed home furnishings startup HomeLane may target Tier 2, Tier 3 cities in 2020

 
Sequoia-backed home furnishings startup HomeLane may target Tier 2, Tier 3 cities in 2020

Online home design and furnishing startup, HomeLane which is currently present across top cities, plans to expand to Tier 2 and Tier 3 cities in 2020, to benefit from the rise in construction in smaller towns, according to a top executive of the company.

“By 2020, I am thinking of probably looking at Tier 2 and 3 (cities),” said  Srikanth Iyer, Co-founder, and Chief Executive Officer, HomeLane told Moneycontrol at the launch of its first experience centre in Gurgaon.

The company is planning to have a hub at a central location and eventually distribute products to small cities.

“I am interested in building something for the common man and the middle class in India. The idea is not only to (cater to customers) in Tier 1 but also in Tier 2-3 markets,” said  Iyer.

HomeLane which now has eight experience centres in the country plans to invest Rs 9 crore only in Delhi NCR in next six months to open new centres in Noida, South Delhi and Faridabad.

The plan is to capture 7-10 percent of the market over the next 3 years. Other players in the furniture space include firms like Mumbai-based Pepperfry and Bangalore-based UrbanLadder. While Pepperfry last raised Rs 250 crore from the US-based financial services firm, State Street Global Advisors, Urban Ladder raised over Rs 77 crore from investors such as Kalaari Capital, SAIF Partners, Sequoia Capital and Steadview Capital in March in an internal round.

HomeLane on the other hand, last raised Rs 24 crore from Brand Capital in June as an extension to its previous $10 million funding round led by Accel Partners, last year.

HomeLane offers a virtual design platform from where customers can select things like the design of a modular kitchen, a wardrobe or other home design products. Once the order is placed, the designers from HomeLane help the customers in getting the furniture customised and installed in their houses.  The company claims to be delivering the products within 45 days. The price of products ranges between Rs 1-6 lakh.

The experience centre launched in Gurgaon will help the customers to touch and feel the products while a dedicated designer will help them to personalise it for themselves.

HomeLane also has its in-house software called SpaceCraft. It helps the customer and designer to view their design online along with the quotation of it.

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