Arcade, a generative AI marketplace for designing jewelry, is expanding its offerings to include home goods, starting with rugs.
The company also introduced a new feature called “Match My Room,” which allows users to upload a photo of their room so their design complements the existing colors and style.
Alongside this expansion, Arcade announced its $25 million Series A funding round, bringing the total amount raised to $42 million
AI-Powered Rug Design
Similar to Arcade’s jewelry design generator, the rug creation tool leverages Midjourney and Stable Diffusion to generate AI-designed rugs. Users can select the rug material and enter a text prompt to describe the desired design. Once generated, the design is paired with a manufacturer, who sends a free sample for approval before purchasing.
Based on testing, rugs start at around $400 for a 3×9 hand-tufted wool option. Prices increase for premium materials like cashmere, alpaca, and mohair. However, Arcade claims to offer more affordable options than luxury rug retailers that charge thousands of dollars.
New Features and Selling Programs
The “Match My Room” feature allows users to upload a photo of their space. While the AI can analyze color matching, it does not replicate patterns from existing decor, such as pillows or blankets. However, it serves as a useful tool for ensuring color accents blend with furniture.
For users looking to create designs for fun, Arcade offers Dream Boards, similar to Pinterest, where users can browse and purchase themed products, such as Hollywood-inspired earrings.
Additionally, Arcade has a seller program, allowing individuals to earn a 5% commission per sale—an increase from the previous 2.5%. Users can earn even more by joining Arcade’s affiliate program.
Funding and Future Expansion
The company recently launched an entrepreneur program to help content creators unlock higher commission rates. Major media outlets and influencers with over 25,000 followers are encouraged to sign up via Arcade’s marketing team.
Despite launching its beta jewelry offering only in September 2024, Arcade claims to have generated 650,000 jewelry designs. However, the company has not disclosed sales data or seller commission earnings.
Arcade is led by Mariam Naficy, founder of Minted and cosmetics retailer Eve. The Series A round was led by Canaan Partners, with Kirsten Green (Forerunner) also participating.
The new funding will go toward hiring, platform development, and expanding product categories like ceramics and pillows. Naficy has previously hinted at apparel and leather goods as future additions. The company’s website suggests chain belts are next.
Arcade previously raised $17 million from investors, including Ashton Kutcher (Sound Ventures), Offline Ventures, Reid Hoffman (LinkedIn co-founder), Inspired Capital, and Torch Capital. Other notable backers include David Luan, CEO of Adept AI Labs, and former OpenAI vice president of engineering.
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