Why the PharmEasy founders are building AllHome to organise India’s home improvement market

When Dharmil Sheth, Dhaval Shah, Hardik Dedhia and Siddharth Shah began thinking about life after PharmEasy, launching another healthcare startup was never the plan. Instead, they turned to an industry they knew firsthand from building their own homes and offices—one marked by fragmented suppliers, inconsistent pricing, delayed deliveries, and few organised national brands. So they launched AllHome, a home improvement venture.

Just over a year after launch, the Mumbai-based startup has raised ₹200 crore in a Series B round led by Bessemer Venture Partners at a valuation of ₹2,000 crore, with participation from Stride Ventures and several family offices. The company claims to have crossed an annual revenue run rate (ARR) of over ₹400 crore while remaining EBITDA profitable, with margins of 18-20%.

AllHome operates across four product categories—surfaces, hardware and bath fittings, façades and windows, and lighting—serving homeowners, architects, designers and contractors. According to Ankur Bisen, senior partner at The Knowledge Company, India’s home improvement market is estimated at $30-35 billion for products alone, and remains largely unorganised despite demand driven by urbanisation, rising home ownership, and higher spending on interiors.

Why did the founders choose home improvement?

For entrepreneurs who have already built one of India’s best-known digital healthcare companies, the obvious question was why move into an entirely different industry. For Sheth, the answer begins with scale. “Even after seeing massive scale with PharmEasy, we thought the second venture that we should build should ideally be larger than what we had done the first time around,” he tells Fortune India. “If the second time around we don’t build something larger, we’re doing ourselves and our potential a disservice.”

Sheth explains that home interiors and proptech make up one of the largest sectors today. “It is roughly four times larger than outpatient healthcare,” he says. But market size alone wasn’t enough; the founders wanted a sector where technology adoption remains limited despite its enormous addressable market. “We wanted something where technology could play a massive role. We wanted something that is consumer-focussed and where we could dedicate the next few decades of our lives to building something meaningful,” says Sheth.

Dhaval Shah sees the opportunity underpinned by long-term structural trends. “We’ve always believed that roti, kapda aur makaan will never go out of fashion,” he says. “Construction activity is increasing, commercial spaces are expanding, tourism and hospitality are growing, and consumers today want better-designed homes and spaces. We believe this is the right time to build trusted brands in this ecosystem.” Yet purchasing stays fragmented across hundreds of local suppliers—room, they believe, for an organised player.

Lessons from PharmEasy

The underlying model, the founders say, is similar. “In every consumer industry there is a product, there is a supply chain and there is a consumer,” says Dedhia. “In healthcare, doctors influence purchase decisions. In home improvement, architects, designers, and contractors influence a significant share of purchasing decisions.”

The biggest lesson was where value gets created. “In PharmEasy, we were retailers, distributors and supply-chain partners,” Dedhia says. “Supply-chain players capture only a part of the margin, while the product owner captures the largest share. This time we wanted to build the products and brands ourselves.” Rather than a marketplace, AllHome builds and owns brands across categories, giving it control over pricing, margins, and quality.

Why is AllHome focusing on products over projects?

Unlike interior-design firms that manage the entire renovation, AllHome has stayed away from design-and-execution. A typical project involves a designer, a contractor and a product supplier; most organised players try to own the first two while sourcing products elsewhere. AllHome flips that. “Most startups are trying to become the designer and contractor while buying products from others,” says Sheth. “We believe that is the wrong model.”

Nearly 70% of home-building spend goes on products such as windows, hardware, bath fittings, lighting, surfaces, and flooring; design accounts for roughly 10% and labour another 20%, say experts. “Work with any designer you like. Work with any contractor you prefer. Our job is to provide the products because that is where most of the spending happens.” It is also building what it calls one of India’s largest single-location window facilities.

For Siddharth Shah, the opportunity became evident firsthand. “While building our own homes and offices, we realised how difficult it was to find reliable suppliers who could deliver quality products, transparent pricing and predictable timelines,” he says. “There are excellent manufacturers across India, but very few have become nationally recognised brands.” That, he says, is precisely the gap AllHome wants to address.

Can AllHome organise a fragmented market?

Bisen of The Knowledge Company puts the interior products market—excluding construction materials—at roughly $30-35 billion, with architecture, interior design and project management adding another $2-3 billion. Growth, he says, is driven by urbanisation, rising renovation spending and demand for smarter, energy-efficient homes. The sector remains deeply fragmented, spanning thousands of regional manufacturers, suppliers and designers.

Bisen cautions against reading the growth purely as premiumisation. “When people build homes, they are extremely value-conscious,” he tells Fortune India. “Consumers optimise purchases within a fixed budget. They don’t simply pay more because a product is positioned as premium.”

For AllHome, that fragmentation is the opportunity: quality manufacturers exist, but few are trusted national brands. The fresh capital will expand experience centres, strengthen its technology, deepen manufacturing, and broaden the portfolio.

Whether AllHome can organise one of India’s largest yet least organised markets remains to be seen. The opportunity is significant, but so are the challenges—building multiple brands, creating nationwide distribution, and holding profitability will test how well the founders apply their PharmEasy lessons. Their bet is that the next decade’s opportunity lies not in managing renovations, but in the products that go into every home. If that thesis holds, AllHome’ second act could prove as ambitious as its first.