New Delhi, Oct. 24 -- Homevista Decor & Furnishings Pvt. Ltd, which owns the brand HomeLane and acquired its rival Design Cafe last year in a share-swap deal, reported an operating revenue of Rs 748 crore for the combined entity in FY25, missing its target.

While there is a year-on-year (YoY) rise of 22% in revenue, the number is lower than the Rs 1,000 crore target that the two companies said they were aiming for at the time of merger in September last year.

HomeLane's (Homevista's) acquisition of DesignCafe last year created one of the largest entities in the interiors category in India, in terms of projects delivered, with the valuation of the combined entity pegged at around Rs 3,000 crore (nearly $360 million).

Homevista, which also operates the brands Doowup, Cubico and Wrapzap besides HomeLane, acquired 88.13% stake in G S E-Commerce Pvt. Ltd, which operated DesignCafe, and will buy the remaining shares in the future.

While the consolidated revenue of Homevista Decor & Furnishings has grown 22% from a year ago, it is lower than the sum of the revenues of individual entities--Homevista and GS E-Commerce--in FY24.

In FY24, HomeLane's parent Homevista Decor and Furnishings Pvt. Ltd reported net sales of Rs 614 crore, while G S E-Commerce Pvt. Ltd. that operated DesignCafe's posted Rs 138 crore of operating revenue, according to their filing with the Registrar of Companies sourced by VCCEdge. Together, their combined revenue from operations stood at Rs 751 crore in FY24.

Design Cafe's standalone numbers are likely to have weighed down the growth in FY25, as HomeLane's standalone revenue from operations stood at Rs 668 crore last year, up from Rs 614 crore in FY24.

Turning point

The co-founder and chief executive officer of HomeLane Srikanth Iyer said that FY25 marked a turning point.

"FY25 marks a turning point for HomeLane as we deliver profitable growth while integrating the strengths of HomeLane and DesignCafe," said Iyer.

HomeLane said that the company reported Ebitda profitability for the first time in the fourth quarter of FY25. Ebitda, a reflection of operational profitability, stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It reported an Ebitda of Rs 2.8 crore in the quarter from a revenue of Rs 219 crore.

Meanwhile, for the entire fiscal, the startup narrowed its Ebitda losses YoY by 47% to Rs 57 crore. It cut its net losses to Rs 111 crore in FY25, compared to Rs 122 crore in FY24.

The company had been aiming to achieve Ebitda profitability for the entire fiscal FY25.

Founded in 2014 by Iyer and Choudhry, HomeLane provides end-to-end personalised home interior makeovers. Meanwhile, DesignCafe operates in the premium range.

Published by HT Digital Content Services with permission from VC Circle.