Source: Entrackr
Bengaluru, Home interior design firm Bonito Designs plans to raise ₹81 crore (around $9.5 million) from its holding company and a longtime backer Tomorrow Capital, according to documents filed with the Registrar of Companies (RoC).
In May 2023, the board approved the funding round, and the company can now issue 28,357 Class A equity shares at INR 28,564 per share to Tomorrow Capital. Of the total, INR 51 crore has already been received and the remaining amount is expected soon.
This is the company’s first major funding in the last two years. The last funding from Bonito was INR 40 crore in June 2023, from HDFC, Tomorrow Capital and Lodha Ventures.
Valuation Down, Stake Goes Up
With this latest funding round, Bonito Designs is valued at ₹531 crore (or around $62.5 million). This is an 18% decrease from its previous ₹650 crore valuation in 2023.
After this allotment, Tomorrow Capital will hold a 67% stake in Bonito (fully diluted), according to startup information platform TheKredible.
This investment is an indication that Tomorrow Capital is still supportive of the firm despite the lower valuation, having backed Bonito in its early funding rounds.
Growth in Revenue, and Losses
Bonito Designs reported substantial revenue growth for the past fiscal year, but it also reported a big reported increase in losses. The company’s operating revenue increased almost 50% to ₹153.4 crore in FY24, up from ₹104 crore in FY23. However, at the same time, the company’s net loss more than doubled to ₹66.9 crore from ₹32.7 crore.
This indicates that while the business is growing it is also spending to expand its operations and reach more customers.
Company Background
Bonito Designs, founded in 2012 by Sameer AM and Vathsala CR, offers complete home interior design services. Bonito Designs is geared towards custom and affordable home interiors, catering to both of its luxury and mid-range homes. Rather than using pre-fixed design catalogues, Bonito Designs creates new designs based on customer needs.
Bonito Designs operates in Bengaluru and Mumbai, and hopes to expand to Hyderabad, Pune, and Chennai.
Increased Competition
The company is in competition with other major players in the home interiors market such as Livspace, HomeLane and DesignCafe, which was recently acquired by HomeLane.
Bonito has raised around $22 million to date. Equipped with the new capital, it is looking to expand to new cities, invest in technology, and enhance service levels.
