Design Cafe raises Rs 40 Crores led by Westbridge
Home interior solutions startup Design Cafe has raised Rs 40 crore, led by private equity fund WestBridge Capital, Mirabilis Investment Trust and venture debt fund Alteria Capital.
This funding tops up its $25 million round in September 2021.
WestBridge Capital is an existing investor in the startup.
Other existing investors Sixth Sense Ventures as well as Design Cafe’s founders Shezaan Bhojani and Gita Ramanan also participated in the latest round.
The round is a mix of equity and debt with most of the capital raised through equity, cofounder Bhojani told without disclosing the valuation of the company.
Design Cafe was valued at $96.5 million as of August 2022, data sourced through business intelligence platform Tracxn showed.
The company competes with Goldman Sachs-backed Livspace and Accel-backed Homelane.
“Essentially, what we are doing is that it is an extension of the last round,” said Bhojani. “We are making sure that there is a 36-month runway. The idea is to have enough capital in the bank till you get profitable.”
He said the company would become profitable next year and that it was already making an operating profit in all the nine cities that it was present in.
The startup has two offerings, a premium solution for about Rs 8 lakh and a budget home interior solution under the brand name Qarpentri.
“We are very excited about expanding Design Cafe and our new brand Qarpentri across India. In just six months since launch, we have become market leaders in this category with over 4x growth and are profitable to boot,” cofounder and chief executive Ramanan said.
Bhojani said the company was currently operating at an annualised revenue run rate of Rs 200 crore.
“In the last year, we have made significant progress towards profitability. Our margins have increased significantly, and we are operationally profitable across all cities,” Bhojani said. “This round will help us take both our brands to newer markets across India, as we continue to deliver 60-70% CAGR (Compounded Annual Growth Rate) growth annually.”
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