Vaaree Secures $2.5 Million in Pre-Series A Funding

Home decor startup Vaaree has successfully raised Rs 20.78 crore ($2.5 million) in a pre-Series A funding round. This round was spearheaded by Capier Investments, with additional participation from Peak XV’s Surge Ventures. The capital infusion aims to bolster Vaaree’s ambitious expansion plans in the home furnishing sector.

Vaaree, co-founded by Garima Luthra, Pranav Arora, and Varun Vohra, has quickly gained prominence in just two years. The recent funding round saw the issuance of 3,063 pre-series A Compulsorily Convertible Preference Shares (CCPS) at Rs 67,856 each. Capier Investments contributed Rs 12.47 crore, while Surge Ventures added Rs 8.31 crore. This financial boost demonstrates the strong confidence investors have in Vaaree’s vision and potential.

The influx of new capital also highlights the growing investor interest in the home decor market. Post-funding, Vaaree’s valuation has reached Rs 180 crore ($21.6 million), as estimated by TheKredible. This marks a significant leap for the startup, which has now raised a total of approximately $7 million, including a $4 million seed round led by Surge Ventures and supported by Vistra, Better Capital, Capier Investments, and All in Capital.

Vaaree offers a diverse range of home decor products, including furnishings, kitchen items, decor pieces, bath accessories, and garden products, catering to a wide array of consumer preferences. Despite its rapid growth potential, Vaaree’s financial journey has faced challenges. In its first fiscal year, the startup reported revenue of Rs 1.91 crore against a loss of Rs 3.5 crore. Stakeholders are eagerly awaiting the financial results for FY24.