Home décor and furnishings marketplace Vaaree raises Rs 65 Cr in Series A funding

Bengaluru-based home décor and furnishings marketplace Vaaree has raised Rs 65 crore in a Series A funding round.

The round was led by Hero Enterprise, the investment arm of Hero Group, and Cap Alpha Ventures, an early-stage investment firm, formerly known as Client Associates Alternate Fund.

Existing backers, including Peak XV’s Surge, PeerCapital, All In Capital, Better Capital, OTP Ventures, and entrepreneur Kunal Shah have also supported the company.

The capital will be used to expand Vaaree’s fulfilment network, improve delivery speed, and strengthen its AI-powered home styling and product discovery platform, VibeCheck.

Founded in Bengaluru in 2022, Vaaree operates a curated online marketplace for home décor and furnishings.

The company says it follows a selective model, working with a small fraction of manufacturers that meet its quality and design standards. Its catalogue spans more than 1,50,000 products across categories such as décor, furnishings, kitchenware, lighting, and bed-and-bath products.

The company plans to channel much of the new funding into VibeCheck, an AI-based styling tool that helps shoppers discover products based on their preferences, create mood boards, and visualise coordinated room designs.

Vaaree also intends to expand its fulfilment and quality verification centres to bring inventory closer to customers and move towards next-day deliveries in major cities.

“The problem in home category is not a lack of products. It is the lack of confidence customers feel while putting a space together,” said co-founder Varun Vohra, adding that VibeCheck aims to give every Indian access to "a personal home stylist".

Hero Enterprise Chairman Sunil Kant Munjal said Vaaree is tackling a fragmented market with a technology-led approach while building a robust supply chain and quality assurance framework.

Last year, Vaaree raised a $4.6 million pre-Series A round to scale VibeCheck and expand its fulfilment network, following an earlier $4 million seed round led by Peak XV’s Surge.

The latest funding comes amid continued investor interest in India’s home and lifestyle commerce sector.

The online home furnishing and décor market in India is driven by rising internet penetration, digital payments, and increasing demand for organised retail. AI-powered shopping tools are also becoming more common in the market as retailers seek to improve product discovery and reduce decision fatigue for consumers.