Ernesta, a New York-based direct-to-consumer custom rug company, has raised $25 million in a Series A funding round led by Addition with participation from True Ventures (invested in Avidbots and Diligent Robotics) and other investors.
With this fund, Ernesta plans to expand the custom category of the domestic rug market by offering residential and commercial buyers the option to purchase from a thoughtfully curated selection of rugs cut to fit their exact space.
The global carpet and rug market is expected to reach $120 billion by 2030, with the current market fragmented across specialty retailers, mass retailers, designers, and warehouses.
Develops design-focused custom rugs
Ernesta was founded by the co-founder of Peloton — John Foley, Hisao Kushi, and Yony Feng. The company is on a mission to bring design-focused custom rugs to homes and places of gathering through an enjoyable, frictionless, and affordable experience.
“I’ve always had a passion for design. So when I noticed how confusing and overwhelming the process can be for consumers who want great style at an accessible price point, particularly in the rug category, I saw a white space in the market,” says Foley.
He adds, “With Ernesta, our goal is to bring high-quality, custom rugs to a wide audience through a community-driven, curated, and personal buying experience. Hisao, Yony, and I are excited to work with a talented launch team, some of whom were part of the team that built Peloton into a household name to help people find the perfect custom rug for their needs in a frictionless, affordable way.”
Further, the company believes that high-quality custom design shouldn’t be out of reach for consumers and aim to address this need in the multi-billion dollar global rug industry.
Ernesta’s founders have decades of experience working in the consumer tech space. In addition to Peloton, Foley has launched or led several other companies throughout his career, including Proust.com, Pronto.com, and Evite.com, three IAC-backed businesses.
“I have known John for many years and continue to be impressed by his entrepreneurial drive and instinctive ability to anticipate what consumers want,” says Lee Fixel, founder of Addition. “The rug category is ripe for innovation, and I look forward to supporting Ernesta to capitalize on this great market opportunity.”
Jon Callaghan, the co-founder of True Ventures, adds, “I’ve long been a big believer in John Foley and his ability to see gaps in the market and turn ideas into reality. We are thrilled to be able to support his latest venture and look forward to watching him create magic again, this time in a whole new category.”
