Arcade, a generative AI marketplace known for jewelry design, is expanding into home goods, starting with rugs. Alongside this, the company introduced “Match My Room,” a feature that lets users upload a room photo to generate rug designs that complement their space.
Arcade also announced a $25 million Series A funding round, bringing its total funding to $42 million. The round was led by Laura Chau (Canaan Partners) with participation from Kirsten Green (Forerunner) and previous investors like Ashton Kutcher’s Sound Ventures, Offline Ventures, and LinkedIn co-founder Reid Hoffman.
Like its jewelry tool, Arcade’s rug generator uses Midjourney and Stable Diffusion. Users select a material and provide a text prompt to create a design, which is then matched with a manufacturer. A free sample is sent for approval before purchase. Rugs start at around $400 for a 3×9 hand-tufted wool option, with higher prices for premium materials like cashmere, alpaca, and mohair.
While “Match My Room” helps with color coordination, it cannot perfectly replicate patterns from other decor items. Still, it’s a useful tool for aesthetic alignment. Arcade also offers “Dream Boards,” similar to Pinterest, allowing users to explore themed product collections.
Arcade’s seller program now offers a 5% commission per sale, up from 2.5%, with additional earnings available through its affiliate program. A new entrepreneur initiative invites content creators and influencers with over 25,000 followers to join for higher commissions.
Since its jewelry beta launch in September 2024, Arcade has generated 650,000 designs, though it hasn’t disclosed purchase interest or seller earnings. Founder Mariam Naficy, previously of Minted, aims to expand Arcade into ceramics, pillows, apparel, and leather goods, with chain belts next on the roadmap.
