HomeLane has laid off 30-40 people in product and tech roles, according to sources, who spoke to businessline on the condition of anonymity. The sources added that the step was taken as the company is aiming to become EBITDA profitable by June and had to shutdown some ongoing initiatives for the same. As per Linkedin, HomeLane has 1,000-5,000 employees.
Fundraising
In September 2021, HomeLane raised $50 million (₹371 crores) Series E funding led by IIFL AMC’s Late Stage Tech Fund, OIJIF II (Oman India Joint Investment Fund) and Stride Ventures.
Existing investors Pidilite, Evolvence, NuVentures, Sequoia and Accel also participated in this round of fundraising. Overall, the company has raised more than $104 million (₹765 crores) in funds over the last 7 years. In late 2022, HomeLane was reportedly looking to raise $80-$100 million funding and has also been in talks with WakeFit for a merger.
Net loss
The company reported a net loss of ₹153 crore in FY22, which is 50 per cent more than FY21. This was against a revenue of ₹426 crore in FY22 from ₹276 crore in FY21. Businessline’s messages to HomeLane founder Srikanth Iyer did not elicit a response.
The ongoing funding winter and uncertain market conditions have led to massive layoffs across tech companies. From majors like Microsoft, Amazon, and Google to young unicorns such as BYJU’S, Unacademy, and Ola have laid off employees and announced cost-cutting measures to sustain the market downturn.
In 2020, HomeLane’s competitor Livspace has also laid off 450 employees, almost 15 per cent of its total workforce, due to the harsh impact of coronavirus lockdown. Further, furniture and decor brand Urban Ladder laid off 90 employees in 2019 as the company struggled to raise new funding and make more profit.