Soon after the acquisition of online interiors brand marketplace Capricoast, HomeLane, an online home interiors brand, has shut it down.
In November this year, HomeLane has acquired one of its competitors Capricoast.com for Rs 90 crores.
“Post its acquisition, brand Capricoast is entirely absorbed by HomeLane.com. The entire team of Capricoast is now a part of HomeLane”, said Tanuj Choudhary, chief business officer, HomeLane. Capricoast’s team of 120 employees are now part of the company brand. Jawad Ayaz, founder of Capricoast, has joined the board.
“The Capricoast team brings with it a powerful technology back-end that will further strengthen our product offering and go a long way in making HomeLane.com the preferred home décor destination for customers across India. This acquisition also marks the beginning of next phase of growth and expansion. Owing to this acquisition, we have now expanded to the Delhi-NCR region as well,” added Chaudhary.
Capricoast is among the start-ups that were acquired and shut down, a trend that has been growing of late in the emerging e-commerce sector. Cab aggregator Ola closed TaxiForSure after acquiring it.
Homelane was founded in 2014 by Srikanth Iyer and Rama Harinath and competes with the likes of Pepperfry and Livspace. At present, HomeLane is in Bangalore, Chennai, Hyderabad, Mumbai and the NCR cities.
Last week, Bengaluru-based startup had raised $10 million from Accel Partners, Sequoia Capital, and RB Investments. Currently, it claims to process about 100 orders a month.
Till date, the firm has raised about $15 million in venture funding from investors like Sequoia Capital, Aarin Capital, Growth Story and Baring PE. The firm sells design modules for kitchen spaces, bedrooms, and other furniture sets like wardrobes, study tables and storage units. It is a full-service model. The customer places the order with us, it executes the order through its partners.
The company plans to expand in 10-12 cities in the next two-three years and revenue up to Rs 500 crore. In 2015-16, it recorded a revenue of Rs 34 crore and a loss of Rs 52. crore.