HomeLane forecasts revenue growth through its new commercial interior design segment, Cubico, aiming to contribute ₹80 crore this year. The company anticipates potential expansion to ₹1,000 crore within five years, while also launching innovations in its home design services. With significant market presence plans and an eye on industry consolidation, HomeLane aims for broad revenue increases by adapting to market demands and investing in future capabilities.
HomeLane, a provider of home interior design services, is strategically positioning itself to harness growth within the commercial design sector, as articulated by co-founder and CEO Srikanth Iyer. The company initiated its foray into commercial interiors at the start of the year, anticipating that this segment will contribute 10% of its revenue, projected at approximately ₹80 crore for this year. Iyer expressed optimism about the commercial vertical, termed Cubico, estimating its potential to evolve into a ₹1,000-crore enterprise within five years, while noting the absence of substantial competition in this niche. “You have players who do the Infosys office or Microsoft office who are large integrators. They are untouchable, but between 50 and 500 seats specifically, which we call the SME segment, there are no brands,” Iyer stated. He emphasized the necessity of at least 100 brands in this space, with HomeLane aspiring to be a leading figure in the market. Despite the promising outlook, entering the commercial interior design market poses challenges, particularly due to its sensitivity to pricing. Rhea Sawant, an architect and Founder of Tinge by Rhea Truptes, cautioned about the intense competition among medium-sized vendors that often leads to aggressive pricing strategies. “With many commercial spaces being procured on a lease basis, the urgency to execute projects swiftly is paramount,” she noted. In addition to expanding its commercial offerings, HomeLane is innovating its existing home interior services. The firm has introduced Wrap Zap, a pilot program designed to revitalize small spaces such as bedrooms and kitchens with enhancements including wall painting and paneling, all completed within one to two days. Iyer mentioned, “We are still doing PMF (product market fit) testing” and has yet to allocate significant marketing resources, pending the validation of the product. Currently operating in 25 cities, encompassing 7 metropolitan areas and 18 tier-2 cities, HomeLane plans to broaden its reach to 50 cities within the next two years. Iyer acknowledged that while the tier-2 and tier-3 markets may still be emerging, the demand for branded home interior solutions is robust, alongside a willingness to pay a premium. With the home interiors market estimated at $20 billion, predominantly driven by unorganized local players, Iyer articulated confidence in the company’s future: “Even if I convert one third of that into organized, it is huge.” HomeLane’s recent acquisition of Design Cafe allows for an expanded target market among premium customers, combining HomeLane’s technological focus with Design Cafe’s strong emphasis on the design process. Iyer foresees continued consolidation within the industry driven by tightening funding, noting, “I think it will, it’s inevitable and it’s bound to happen, simply because funding has become more difficult.” The overall funding landscape in the home interiors sector has contracted significantly from $200 million in 2022 to a mere $26 million thus far in 2023. Having raised a total of $160 million from prominent investors including Westbridge Capital and Accel, HomeLane aims to utilize the recent infusion of $27 million to amplify its service offerings and expand its footprint. With ambitions set on achieving a revenue of ₹2,500-3,000 crore within the next five to six years, Iyer expressed a clear growth trajectory for the company, projecting revenues between ₹1,000-2,000 crore within the next two to three years, subsequently elevating it to the ₹2,000-3,000 crore bracket in the following two years, following a combined revenue generation of ₹761 crore between HomeLane and Design Cafe during FY24.
The article discusses HomeLane’s strategic initiatives to grow its commercial interior design services under the brand Cubico, as well as its ongoing enhancements to its home interior design offerings. As the company navigates a competitive market characterized by aggressive pricing strategies and a predominance of unorganized local players, it seeks to establish a strong foothold in both commercial and residential segments. The insights provided by Srikanth Iyer and other industry professionals illustrate the challenges and opportunities within this expanding sector, as well as the potential for significant revenue growth driven by innovative service delivery and strategic acquisitions.
In summary, HomeLane is leveraging its new commercial interiors segment to enhance growth while simultaneously innovating its home design services. With strategic investments and an aim to consolidate its market presence amid challenges, the company’s projections highlight a commitment to achieving substantial growth and making waves in both the commercial and residential interior design sectors.
Original Source: www.livemint.com
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