A Gen AI marketplace for designing jewelry, Arcade is expanding its offerings to include home goods, starting with rugs.
The business also unveiled a brand-new tool called “Match My Room,” which lets users upload a picture of their space to make sure the colors and style match. Arcade announced its $25 million Series A investment round in conjunction with this expansion, increasing the total amount raised to $42 million.
The rug creation tool uses Midjourney and Stable Diffusion, just like Arcade’s jewelry design generator. After choosing the rug’s material, users are asked to define the desired design in a text prompt. After the design is created, it is linked with a manufacturer who will provide the designer with a complimentary sample for review prior to purchase. The most economical material, 3×9 hand-tufted wool, costs about $400 for carpets. Higher-end materials like mohair, alpaca, and cashmere cost more. But compared to premium rug sellers that charge thousands of dollars, Arcade says they have more reasonably priced options.
Users can upload a picture of their room using the “Match My Room” feature. The AI can assess color matching, but it is unable to accurately duplicate patterns from other items of decor in the picture, such as blankets and cushions. All things considered, though, it’s a helpful tool for making sure the rug’s color highlights go well with other pieces of furniture.
Arcade has “Dream Boards,” which work similarly to Pinterest boards and feature products with related themes, such Hollywood-inspired earrings, for users who want to build designs for pure delight. Along with making purchases, users can peruse other Dream Boards.
Arcade now offers a seller program that enables users to receive a 5% commission for every product sold, up from the previous 2.5%. By signing up for Arcade’s affiliate program, users can increase their earnings.
A new entrepreneur program was recently introduced by the corporation with the goal of assisting content providers in obtaining greater commission rates. Arcade’s marketing staff encourages influencers with over 25,000 followers and major media sources to sign up by email.
Arcade claims to have produced 650,000 jewelry designs, even though their beta jewelry product was only introduced in September 2024. However, neither the seller’s commission revenue nor the number of people interested in buying these designs were disclosed by the company.
Mariam Naficy, who developed the design marketplace Minted and the cosmetics retailer Eve, is the leader of Arcade. Laura Chau of Canaan Partners led the Series A round, while Kirsten Green of Forerunner also participated.
The additional funds will be used for platform development, hiring, and the launch of new product categories like pillows and ceramics. Naficy previously told TechCrunch that clothing and leather goods might be added to the list of categories. Its website states that chain belts will follow.
Previously, Arcade raised $17 million from Reid Hoffman (co-founder of LinkedIn), Offline Ventures, and Ashton Kutcher (Sound Ventures). Other investors include David Luan, the former vice president of engineering at OpenAI and CEO of Adept AI Labs, as well as Inspired Capital and Torch Capital.
