Homzmart acquires MockUp Studio
Furniture and home goods marketplace Homzmart has acquired Berlin-based startup MockUp Studio for an undisclosed sum, according to a press release (pdf). The tech-enabled interior design startup, founded in 2015, uses AI and computer vision to automatically measure and design a space “to match user styles and the room architecture,” allowing users to visualize furniture and finishings in their homes before clicking through to buy.
We said late last year that more and more startups would turn to M&A to deliver growth following a rash of early-stage companies buying out their competition. But what we had in mind was “consolidation”: Company “A” buying “B” to grow its market share in a fragmented, early-stage market. What Homzmart is doing appears different — and very much out of the Apple playbook: It’s acquiring MockUp Studio not to add size, but to buy a core technology that will help it build a bigger moat around its business.
What they said: “Adding MockUp Studio’s technology means consumers can have the full interior design experience — browsing Homzmart’s entire catalogue, and viewing their desired space, in just a few clicks,” said Homzmart CEO and co-founder Mahmoud Ibrahim.
About Homzmart: Founded in 2019, Homzmart’s B2C marketplace allows customers to purchase furniture products from a variety of brands and merchants. Last year, the company landed USD 15 mn in a series A round led by China’s MSA Capital and Emirati-Saudi VC firm Nuwa Capital, bringing the total amount it has raised to USD 17.2 mn. Homzmart tripled its operations in 2021, according to the release.