LivSpace Rival Design Cafe Bags $4.8 Mn Funding To Extend Runway

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Design Cafe, an online interior design platform, has raised INR 40 crore ($4.8 million) in a funding round led by WestBridge Capital, Mirabilis Investment Trust, and Alteria Capital. The funding will be used to extend the runway and enter new markets. Design Cafe, which offers home interior solutions, is currently operational in nine cities in India and competes with Livspace and Homelane. The startup has secured over INR 390 crore in funding and currently has an annualized revenue run rate of INR 200 crore. Design Cafe’s net loss widened to INR 70.2 crore in FY22, while its operating revenue grew to INR 80.6 crore from INR 56.8 crore in the previous year.

Design Cafe has been successful in securing INR 390 Cr in funding from multiple investors including Sprout Capital, Sidharth Pansari, Apurva Salarpuria, Fireside Ventures and Sixth Sense Ventures. In contrast, LivSpace and HomeLane, competitors of Design Cafe, have recently had to lay off employees due to a cost-cutting exercise amid the funding winter. According to a Technavio report, India’s online home decor segment is expected to grow at a CAGR of 10.2% during 2021-26, reaching a size of $3.75 Bn by 2026.