US rug retailer Ernesta has secured $20m in Series B funding to support showroom expansion and technology development.
The financing round was led by investment company Addition, with participation from existing investors True Ventures and Platform Capital Management.
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Ernesta said the capital will help advance its growth plans as it works to establish a national presence in the US rug market through an omnichannel platform designed for interior designers and homeowners.
The platform integrates digital tools with physical showroom locations.
As part of its retail expansion, the company intends to open up to 30 showroom locations across the US by the end of 2027.
The investment will also be directed towards further development of Ernesta’s technology platforms.
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By GlobalDataPlanned upgrades include enhancements to the Trade Portal, improvements in manufacturing and fabrication technology, and tools aimed at streamlining sample ordering and the management of custom projects.
According to the company, it focuses on custom-sized rugs, including stair runners, designed to fit specific spaces.
Ernesta founder and CEO John Foley said: “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.
“We are building Ernesta to change that, with designer-quality custom-sized rugs, curated design and an experience that feels modern and empowering.”
Alongside the funding announcement, Ernesta confirmed changes to its leadership team.
Its former chief marketing officer CMO Alan Smith has been promoted to president while Alexandria Norton has joined the company as chief financial officer.
Ernesta said the US rug sector remains fragmented, despite approximately 100 million rugs sold each year, and that it sees an opportunity to grow using a technology-driven retail model.
