Ernesta, a New York-based custom-sized rug retailer, has raised $20 million in a Series B financing round led by Addition, with participation from existing investors True Ventures and Platform Capital Management.
The company plans to use the new capital to expand its retail footprint and strengthen its technology platforms as it works to build a leading brand in the U.S. rug market. Ernesta combines digital tools with experiential showrooms in an omnichannel platform designed for both interior designers and homeowners.
As part of its retail strategy, Ernesta plans to scale to 30 showroom locations across the United States by the end of 2027, building on the performance of its existing stores in key design markets. The funding will also support further development of Ernesta’s technology ecosystem, including enhancements to its Trade Portal, improvements to manufacturing and fabrication technologies, and streamlined tools for ordering samples and managing custom rug projects.
Ernesta specializes in custom-sized rugs, including stair runners, cut to fit specific spaces. The company offers curated styles and materials, transparent pricing, and delivery in as little as two weeks.
Founded in 2022, Ernesta says it has quickly grown to become the largest retailer of custom-sized rugs in the United States. The company is targeting an industry that sells roughly 100 million rugs annually but remains highly fragmented, creating an opportunity for a tech-enabled brand focused on design, customization, and supply chain efficiency.
Alongside the funding announcement, Ernesta also revealed two leadership updates. Alan Smith, previously the company’s chief marketing officer, has been promoted to president. The company also appointed Alexandria Norton as chief financial officer.
KEY QUOTES:
“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. Our continued 100% year-on-year growth speaks to how much interior designers and ambitious homeowners are appreciating the Ernesta approach.”
John Foley, Founder And CEO, Ernesta
“Ernesta is building a truly differentiated brand in a massive category that has lacked a modern consumer leader. The team has combined strong product curation, a compelling retail experience, and proprietary technology to simplify the custom rug market. We’re excited to continue supporting their growth.”
Lee Fixel, Founder, Addition
“With Ernesta, we saw an opportunity to build the strongest brand in a category where design matters deeply to Trade and consumers. The company is creating a modern platform that brings together retail, technology, and supply chain innovation in a way that has not existed before.”
Jon Callaghan, Co-Founder And Managing Partner, True Ventures
