Home Decor Startup Vaaree Secures Fresh Funding

Vaaree, a rising company in the home furnishing and decor sector, has secured financial backing of Rs 20.78 crore (approximately $2.5 million) in a pre-Series A funding round. This round was spearheaded by Capier Investments, with additional participation from Surge Ventures, the investment arm of Peak XV.

The company’s regulatory filings reveal that its board authorized the issuance of 3,063 pre-series A compulsorily convertible preference shares (CCPS) at a price of Rs 67,856 each to raise the aforementioned capital. Capier Investments contributed Rs 12.47 crore, while Surge Ventures invested Rs 8.31 crore in this pre-Series A round. There’s a possibility of further funding being secured within the same round.

Vaaree’s Growth Trajectory

According to estimates by TheKredible, Vaaree’s post-money valuation is approximately Rs 180 crore ($21.6 million). This fresh infusion of capital brings Vaaree’s total funding to nearly $7 million. Notably, the company secured a $4 million seed funding round led by Surge Ventures in September of last year. Other participants in that round included Vistra, Better Capital, Capier Investments, and All in Capital.

Founded in 2022 by Garima Luthra, Pranav Arora, and Varun Vohra, Vaaree offers a comprehensive range of home decor products encompassing categories like furnishings, kitchenware, decorative items, bath accessories, and garden supplies. The company aims to cater to a diverse clientele by providing a vast selection of products.

Vaaree’s Funding Landscape

Vaaree was not only part of Surge’s eighth accelerator program cohort but also garnered financial support from angel investors. Some of the prominent angel investors backing Vaaree include Kunal Shah, Arjun Vaidya, Vineeta Singh, Ghazal Alagh, Varun Dua, Manish Dugar, Anjali Bansal, Suhail Sameer, and Ruchi Deepak.

Vaaree’s Financial Performance

Vaaree’s financial statements for the first fiscal year (FY23) indicate an operational revenue of Rs 1.91 crore. However, the company also reported a loss of Rs 3.5 crore during the same period. The company’s financial results for FY24 have not yet been filed.

Competitive Landscape in Home Decor

Livspace, HomeLane, and Furlenco are established players in the home decor space that have secured significant funding. In recent years, there has also been a surge in funding activity for early-stage companies like DecorTwist, Sunday Design, and KraftInn, highlighting the growing potential of this industry.