Workspace interiors startup OfficeBanao has raised $6 Mn in seed funding from Lightspeed Venture Partners. The startup will use the funds to strengthen its technology part and team, specifically in design and growth capabilities. OfficeBanao, founded in January 2022 by Tushar Mittal, Akshya Kumar, and Divyanshu Sharma, serves designers, architects, contractors, office furniture, and material suppliers with commercial interiors. The startup claims to be present in more than 15 cities across India and currently has two offices in Delhi and Bengaluru and a team of 110 people.
Over the next few months, the startup will also focus on establishing a deeper on-ground presence in the top 25 markets in India, catering to customers from small-mid-sized businesses to large enterprises. According to a report, the Indian interior design industry, which was estimated at $23.2 Bn in 2020, is likely to grow into a $38.2 Bn market by 2027. Online interior design services have been gaining traction in India, with companies such as Homelane, Havenly, Livspace, and now Prolance offering their services to customers. These companies provide end-to-end interior design solutions to clients, from design consultation to implementation, and they are increasingly leveraging technology to streamline the process and improve customer experience. With the growth of the interior design industry in India, there is a lot of potential for these companies to capture a significant market share. That’s a significant decline in funding and deal activity for Indian startups compared to the same period last year. The COVID-19 pandemic and its impact on the economy and investor sentiment could be a contributing factor to this decline. However, it’s worth noting that Q1 2022 was an exceptional quarter for Indian startups, with several large funding rounds and high deal activity, which may have skewed the comparison. It will be interesting to see how the Indian startup ecosystem fares in the coming quarters.