HomeLane looking to raise up to $100 million ahead of it’s IPO

• ByStartupStory     |    September 22, 2022

Three people with knowledge of the situation said that HomeLane, a provider of interiors alternatives, is seeking to fund $80-100 million (640–800 crore) from private equity investors, just months after an unsuccessful attempt to merge with the provider of sleep solutions Wakefit.

The individuals referenced above, who asked to remain anonymous, stated that the funding could be obtained through a combination of primary and secondary stake sales and that it might value HomeLane at $600-700 million.

One of the three individuals mentioned above stated, “The valuation is at a 20% markup to its former valuation of $500-550 million.”HomeLane raised $50 million as part of its Series E funding round last year, which was coordinated by Stride Ventures, Oman India Joint Investment Fund (OIJIF), and IIFL AMC’s late-stage innovation fund.
The talks between Wakefit and HomeLane, both sponsored by Sequoia Capital, for a merger were originally reported in April by Mint. The goal was to build a sizable organisation that would control the home furnishings and interior design markets and become more robust in preparation for a public listing. The second person listed above stated, “However, at strategy and synergy level, the conversations did not materialise and both sides broke off the discussions a few months back.”

According to the original source described above, HomeLane has hired investment banks ICICI Securities, Axis Capital, and Bank of America to provide advice on a projected initial public offering that is scheduled to begin by the end of 2023. The new fundraising would likely be a pre-IPO round and can let some early investors remove funds from their accounts, the source said, noting that some of the current investors are also likely to participate in the fundraiser.

Pidilite, Evolvence, NuVentures, Sequoia Capital, and Accel are among the investors in HomeLane. To date, $104 million has been raised for it.”The company cannot test the waters for an IPO this year due to market conditions. It will only submit paperwork by the end of the year, according to the third person in the list above.

HomeLane, founded in 2014 by Tanuj Choudhry and Srikanth Iyer, provides comprehensive custom interior home renovations. The company has 34 knowledge centres spread throughout 19 cities. Iyer, who could be HomeLane’s chief executive, declined to comment in an email in response to questions.

According to the most recent information available from VCCEdge, the information and analytics platform of VCCircle, HomeLane’s revenue increased to $271 crore in fiscal 2020–21 from $232 crore the previous year. Its loss on earnings before interest, taxes, depreciation, and amortisation (Ebitda) decreased during the period from 98 crores to 74.5 crores.

Iyer stated that the company was aiming for an income of 2,500 crores by 2023–2024 in a 2021 interview. In India, the house inside trend is becoming more popular with consumers. Livspace secured $180 million in a new round headed by private equity giant KKR in January, valuing the omnichannel home interiors platform at $1.2 billion. According to industry experts, the home interiors market, which is currently estimated to be around $20–23 billion, will grow at a rate of above 10% CAGR over the next five years.

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