After closing FY25 with improving unit economics, the interiors platform plans a 100-store franchise rollout across metros and emerging cities
A franchise-led expansion strategy has moved to the forefront at HomeLane as the company closes FY25 with improving unit economics and outlines plans to add 100 new franchise stores over the next 12 months. The development follows a year in which the interiors platform recorded steady revenue growth and reached an operational turning point.
For the financial year ended March 2025, HomeLane reported revenue of ₹756 crore, reflecting 22 percent year-on-year growth. The company also turned EBITDA positive in the fourth quarter, marking a key milestone after several years of investment-led expansion. Management views this phase as a transition from rapid market entry to disciplined scale built around predictable execution and cost control.
Central to this shift is HomeLane’s franchise-led operating model. The company currently runs its network through two formats: Franchise-Owned, Company-Operated (FOCO) stores, and the more recently introduced Franchise-Owned, Franchise-Operated (FOFO) model. Together, these formats have enabled HomeLane to expand its presence across more than 40 cities, balancing standardisation with local execution.
During 2025, the company completed over 55,000 home interior projects nationwide, averaging close to 30 installations per day. Its footprint spans major metropolitan markets such as Mumbai, Bengaluru, and Delhi-NCR, as well as emerging centres including Siliguri, Jaipur, and Kochi. According to the company, the franchise model has played a key role in extending reach beyond metros while maintaining delivery timelines and cost predictability.
Commenting on the company’s direction, Srikanth Iyer, Chief Executive Officer and Co-Founder of HomeLane, said the progress made in FY25 has laid the foundation for the next stage of growth. He noted that expanding the franchise network, alongside investments in operational systems, has helped bring technology-enabled interior solutions to a wider base of homeowners. Looking ahead to 2026, the focus remains on deepening presence in high-potential urban clusters while continuing to scale in fast-growing Tier II and Tier III markets.
HomeLane’s operating model is underpinned by SpaceCraft, its proprietary AI-driven design and planning platform. The system integrates machine learning with 3D visualisation to enable real-time pricing, automated planning, and faster decision-making for both designers and customers. The platform is designed to ensure coordination across the entire workflow, from design finalisation to manufacturing and on-site execution.
The company’s supply-side control is supported by a curated catalogue of more than 160 laminate finishes and its private-label product lines, including Tyrox hardware and Hydroguard Plus boards. These elements, according to the company, are intended to reduce variability in quality and timelines as the franchise network scales.
In 2025, HomeLane also completed the acquisition of DesignCafe, strengthening its position in the organised home interiors segment. Financially, the combined entity reported an improvement in fundamentals, with consolidated net losses narrowing to ₹80 crore in FY25 from ₹121.7 crore in the previous year. EBITDA losses also reduced to -9.9 percent from -15 percent, reflecting tighter unit economics.
The company raised ₹225 crore in fresh capital in 2024 to support consolidation efforts and long-term growth initiatives. Management has indicated that this capital, along with the asset-light franchise model, provides sufficient runway to expand the store network while continuing to improve profitability metrics.
Looking ahead to FY26, HomeLane plans to focus on strengthening its franchise base in established urban clusters such as Mumbai and the National Capital Region, while accelerating expansion into Tier II and Tier III cities where demand for branded, end-to-end interior solutions is increasing. The company aims to move closer to full-year profitability by maintaining discipline on costs, execution timelines, and partner performance.
