End-to-end home interior solutions startup HomeLane is targeting profitability in the fourth quarter of FY26 and full-year profitability in FY27, as it shifts to a more measured, franchise-led growth strategy.
The company is aiming for revenue of about Rs 1,100 crore in FY27 — roughly 30% higher than its expected FY26 topline. Customer sign-ups are projected to grow by around 3% during the year.
What did company CEO say?
Near-term expansion will be driven primarily through franchise studios rather than company-owned outlets. “We currently have 67 live franchise studios and 26 more in the pipeline, and we plan to onboard an additional 100 franchise studios in 2026,” Srikanth Iyer, CEO and co-founder of HomeLane, told FE.
He said the focus was on building sustainable, city-level businesses rather than expanding aggressively without regard to profitability.
HomeLane reported revenue of Rs 756 crore in FY25, up from Rs 618 crore in FY24. Iyer said the company was deliberately prioritising depth over breadth in its expansion plans. “We are focusing on deepening our presence in emerging residential markets and creating strong local businesses, instead of chasing expansion at any cost,” he said.
Last funding round
The company last raised capital in September 2024 as part of its acquisition of DesignCafe. The funds were used to support the acquisition and subsequent integration, while retaining the individual strengths of both brands. According to Iyer, the integration has created operational synergies across sourcing, manufacturing, technology and back-end functions.
A significant part of the capital was invested in strengthening the core operating backbone of the business, including supply chain capabilities, technology platforms and governance processes,” he said. This, he added, was aimed at enabling scale without compromising unit economics or customer experience. The company has also used the funds for calibrated geographic expansion in select high-potential urban markets.
HomeLane is expanding beyond the metros, with launches planned in cities such as Patna, Guwahati, Raipur, Chandigarh and Mohali, along with several southern markets, including Thrissur, Mangalore, Vijayawada, Nizamabad, Shimoga, Karimnagar and Thiruvananthapuram. “Our strategy is to go beyond metros and build a strong presence in fast-growing residential hubs,” Iyer said.
The expansion will also include more specialised, need-based offerings, alongside a continued push across franchise-owned company-operated (FOCO) and franchise-owned franchise-operated (FOFO) formats. Iyer said the company’s growth strategy had become more selective and data-driven.
“We are far more focused on contribution margin positivity at a micro-market level, faster payback on customer acquisition, and tighter control over operating leverage,” he said, adding that expansion decisions were now anchored in clear profitability pathways rather than topline growth alone.
On rising competition from new design studios promising factory-finish services, Iyer said the organised segment remained relatively small. “This creates significant room for credible, process-driven brands like HomeLane to grow, as customers increasingly look for reliability, accountability and predictable delivery,” he said.