Niche startups selling small-ticket home products win investor interest
Subscribe to enjoy similar stories. MUMBAI : Even as furniture startups such as Reliance Retail Ltd-backed Urban Ladder and Pepperfry Ltd are witnessing a sales plateau, investors are gung-ho about a small-ticket niche in the segment. Over the last few months, they have backed about half a dozen home decor startups selling kitchenware, bathware, living room accessories, etc.
Home and lifestyle brand Nestasia, founded in 2019 by Aditi Murarka Agrawal and Anurag Agrawal, raised about $8.35 million on 10 September, led by Susquehanna Asia Venture Capital and Stellaris Venture Partners. According to data from Tracxn, it is one of the largest funding rounds in the space, leaving aside HomeLane (Homevista Decor and Furnishings Pvt. Ltd and LivSpace, which also offer interior design services.
Similarly, Vaaree, founded in 2022 by Garima Luthra, Pranav Arora and Varun Vohra, raised $2.5 million in May in a pre-Series A round led by Capier Investments, with the participation of Peak XV’s Surge Ventures. In September 2023, it raised $4 million. Startups such as Decortwist, founded in 2022, and Nestroots, founded in 2016,have also found backers.
“The home décor and kitchen market, valued at $15 billion, is growing rapidly as consumers increasingly seek higher-quality products and fresh designs. Despite strong customer demand, building a standout brand in this category has proven challenging, leading to limited venture capital (VC) interest," Rahul Chowdhri, partner at Stellaris Venture Partners, told Mint. While big players such as Flipkart's Myntra, Nykaa (FSN E-Commerce Ventures Ltd), Amazon India and furniture startups Pepperfry and Urban Ladder have home decor as a category, there’s an opportunity for companies to build a
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