Exclusive: HomeLane to top up Series D round from existing investors

Online home interior design platform, HomeLane is in the process to raise Rs 28 crore to top up its ongoing Series D round from existing investors. The fresh fundraise for the Bengaluru-based company has come after nine months. 

According to regulatory filings, the home furnishing company has placed a private placement offer letter with its existing investors, and it's in the process to raise the amount mentioned above by allotting 6,21,150 Series D3 and 37,558 Series D 2 CCPS shares at Rs 279.56 each.

JSW Ventures has been offered preference shares worth Rs 10.5 crore, followed by Evolvence India Fund which will acquire Rs 7.55 crore worth stakes in HomeLane. 

Series D3 preference shares worth Rs 6.04 crore and Rs 3.77 crore have also been earmarked for early investors Sequoia Capital and Accel Venture Partners participating respectively.

As per Fintrackr's estimates, HomeLane has been valued north of Rs 810 crore in this transaction. JSW Ventures has been allotted ten equity shares along with 125,195 D2 CCPS to kick off the round with remaining capital coming in later tranches. 

After this infusion, Accel India will be the biggest stakeholder with 22.74%, followed by Sequoia’s 17.1%. JSW Ventures and Evolvence India Fund will control single-digit ownership of 2.23% and 9.45%. 

The company's losses have been increasing the past fiscals from Rs 24.2 crore in FY17 to nearly Rs 55 crore in FY19 which has caused severe capital erosion as accumulated losses have dwarfed the total shareholder funds in the company.

HomeLane had secured $30 million worth first tranche of Series D round in December 2019. Once the latest allotment gets materialized, the company would raise a total of $50 million risk capital to date.

Floated by Srikanth Iyer, Rama Harinath along with K Ganesh and Meena Ganesh, the six-year-old HomeLane helps property owners furnish and install fixtures in their new apartments and houses. Operational in seven Indian cities, it claims to have completed over 3,000 projects with 9,000 customers. So far, the company has 16 experience centres with over 900 designers.

HomeLane competes directly with Livspace and Flipspaces along with UrbanLadder and Pepperfry. While Livspace had last raised its $60 million worth funding early this year, Flipspaces’ last round was materialized in January 2019. 

In May this year, HomeLane had laid off its 150 employees or 15% of the total workforce to conserve capital during the Covid-19-hit lockdown.