A cumulative of over $260M was invested in the Indian Home Improvements space since 2010, with 2015 seeing ~73% of the overall funding

Funding in the Home Improvements space, in India, skyrocketed in 2015, with the sector seeing a total $191M raised, owing to some extremely high ticket sized deals. Mature players raised the majority of the funding with Pepperfry alone raising $100M, followed by Urban Ladder with a $50M round, and Livspace with $8M. 2015 also witnessed a boom in the total number of companies founded, with a majority of the companies falling under the furniture and home décor commerce segments.

Our India report on Home Improvements covers 259 Indian online companies that provide commerce, services and technology platforms for home improvement. According to the report, a cumulative of over $260M was invested in the sector since 2010, with 2015 seeing ~73% of the overall funding

Drastic Increase in the Number of Deals in 2015

Besides witnessing a significant increase in the number of companies that got funded in 2015 as compared to 2014, the sector has also seen a greater number of deals in 2015, increasing to 23 from the 6 deals in 2014.
Home Improvement-YoY Funding

In fact, funding activity has been dominated by the large players, with Pepperfry and Urban Ladder attracting 79% of the total 2015 investments.

Home Improvement-LateEarly

But apart from 3 major late stage deals, the funding activity during 2015 has been completely dominated by early stage rounds, with 20 taking place during the year. This means that the ratio of early stage to late stage rounds has increased more than 3x times in 2015 as compared to 2014, mostly attributed to furniture private label and marketplace sectors. But on a whole,there has been a steady increase in the number of Early and Late stage rounds of funding over the last two years.

 

Furniture – Marketplace and Furniture – Private label are two most funded sectors

 

Home Improvement-BM

 

Currently, in terms of funding, the Indian Home Improvements space has been dominated by Marketplace startups in the Furniture segment, raising a total of $135M. Private Label Startups in Furniture follow with a total $109M raised. In terms of companies being founded, the majority in 2015 fall under the furniture and home décor commerce segments.

Home Improvement-Upcoming View

Rentals and technology are the upcoming and emerging sectors in the industry as they are relatively new,  and the ratio of funded to total companies is relatively less. The concept of using Virtual and Augmented Reality to enhance the shopping experience  has picked up pace since 2014, with startups such as Infurnia and 3dphy leading the charge today.

 

Accel, Sequoia, and Norwest Venture are the Most Active Investors

Accel Partners was the most active investor in the Indian home improvements space, having invested in 3 companies and 4 funding rounds; Zansaar, CapriCoast, and Rentomojo. Sequoia Capital follows with investments in Urban Ladder and Home Lane. Norwest Venture Partners also features in the list by having participated in 4 funding rounds of Pepperfry.

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