Ernesta, a NYC-based custom-sized rug company, has raised $20 million in a Series B funding round led by Addition.
The round also saw participation from existing investors True Ventures and Platform Capital Management.
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The company plans to use the funds to grow its offerings and continue developing its products.
The new investment will also help the company improve its technology platforms, including upgrades to its Trade Portal, better manufacturing and production technology, and simpler tools for ordering samples and managing custom projects. As part of its retail strategy, Ernesta plans to expand to 30 showroom locations across the country by the end of 2027, building on the strong performance of its current stores in major design markets.
Ernesta, which has quickly become the largest custom-sized rug retailer in the United States, offers rugs made to fit any space, including stair runners. The company provides curated styles and materials, clear pricing, and delivery in as little as two weeks.
To support its next phase of growth, Ernesta has announced two leadership updates. Alan Smith, previously Chief Marketing Officer, has been promoted to President for his role in growing the brand, shaping the growth strategy, and leading the go-to-market team. The company has also appointed Alexandria Norton as Chief Financial Officer, bringing strong financial leadership as Ernesta continues to expand.
Even though 100 million rugs are sold each year, the U.S. rug market is still highly fragmented. Ernesta aims to fill this gap by becoming the first leading tech-enabled brand in the category.
“Rugs are one of the most important design elements in a home, but the market has long been fragmented and difficult for customers to navigate,” said John Foley, Founder and CEO of Ernesta. “We are building Ernesta to change that by offering designer-quality custom-sized rugs, curated designs, and a modern, simple experience. Our continued 100% year-on-year growth shows how much interior designers and homeowners value the Ernesta approach.”
“Ernesta is building a unique brand in a large market that has not had a modern consumer leader,” said Lee Fixel of Addition. “The team has combined strong product selection, a great retail experience, and its own technology to make the custom rug market simpler. We’re excited to continue supporting their growth.”
“With Ernesta, we saw a chance to build a leading brand in a category where design is very important to both professionals and consumers,” said Jon Callaghan, Co-founder and Managing Partner at True Ventures. “The company is creating a modern platform that combines retail, technology, and supply chain innovation in a new way.”
About Ernesta
Founded in 2022, Ernesta is a New York–based company that makes custom-sized rugs for interior designers and homeowners. The company offers designer-quality rugs made to fit any space, with curated designs, clear pricing, and fast delivery. Ernesta sells through an omnichannel platform that includes e-commerce, trade tools and retail showrooms. Already the largest retailer of custom-sized rugs in the U.S., the company aims to become the leading brand in the wider rug market.
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