Custom-Rug Retailer Plans to Triple Footprint

Ernesta (New York) announced it has raised $20 million in added financing, which it plans to use to triple its showroom count and make other technological upgrades to improve its omnichannel approach.

“Rugs are one of the most important design elements in the home, yet the category has historically been fragmented, opaque, and difficult for customers to navigate,” said Founder and CEO John Foley. “We are building Ernesta to change that, with designer-quality custom-sized rugs, curated design and an experience that feels modern and empowering. Our continued 100% year-on-year growth speaks to how much interior designers and ambitious homeowners are appreciating the Ernesta approach.”

As part of its retail strategy, Ernesta plans to scale to 30 showroom locations nationwide by the end of 2027. (Per its website, the company currently has six showroom and three more slated to open in the next few months.) The company, founded in 2022, said the new investment will also help Ernesta further develop its technology platforms, including enhancements to its Trade Portal, improvements to manufacturing and fabrication technology, and streamlined tools for ordering samples and managing custom projects.

The added funding comes in the form of a Series B offering that was led by venture capital firm Addition, with participation from existing Ernesta investors True Ventures and Platform Capital Management.