Arcade, a generative AI marketplace for jewelry design, is expanding its offerings to include home goods, starting with carpets.
On Monday, the company also introduced a new feature called “Match My Room,” which allows users to upload a photo of their room to have their design complement existing colors and style.
Simultaneously with this expansion, Arcade announced a $25 million Series A funding round, bringing the total amount of funds raised to $42 million.
Similar to Arcade’s jewelry design generator, the carpet creation tool uses Midjourney and Stable Diffusion technologies. Users select the carpet material and then enter a text query to describe the desired design. Once the design is generated, it is sent to the manufacturer, who sends the author a free sample for approval before purchasing.
According to our testing, the cost of carpets starts at around $400 for a 3×9 hand-pile wool option, which is the most affordable material. Prices go up for more expensive materials such as cashmere, alpaca, and mohair. However, Arcade claims to offer more affordable options than luxury carpet retailers that charge thousands of dollars.
The “Match My Room” feature allows users to upload a photo of their room. Although the AI analyzes the color match, it cannot successfully replicate the patterns of other decorative items in the image, such as pillows and blankets. Overall, however, it is a useful tool for ensuring that the color accents of a carpet blend in with other furniture.
For users who want to create designs for pure fun, Arcade offers “Dream Boards” that function similarly to Pinterest boards, showcasing products with similar themes, such as Hollywood-style earrings. Users can also browse other dream boards and make purchases.
In addition, Arcade has a seller program that allows people to earn 5% commission for each sale of their product, which is up from the 2.5% that was previously available. Users can earn even more by joining Arcade’s affiliate program.
The company has recently launched a new program for entrepreneurs to help content creators unlock higher commission rates. Major media outlets and influencers with more than 25,000 followers can sign up by emailing Arcade’s marketing team.
Although Arcade only launched its beta jewelry offering in September 2024, it claims to have already created 650,000 jewelry designs. However, the company did not say how many users are interested in purchasing these designs, nor did it disclose the commission earnings of sellers.
Arcade is headed by Mariam Naficy, who previously founded cosmetics retailer Eve and design marketplace Minted.
The Series A round was led by Laura Chau (Canaan Partners) with participation from Kirsten Green (Forerunner).
The new capital will be used to hire staff, develop the platform, and introduce new product categories such as ceramics and pillows. Naficy previously mentioned to TechCrunch that additional categories could include clothing and leather goods. According to the company’s website, chain belts are also on the way.
Earlier, Arcade raised $17 million from Ashton Kutcher (Sound Ventures), Offline Ventures, and Reid Hoffman (LinkedIn co-founder). Other investors include Inspired Capital, Torch Capital, and David Luan, CEO of Adept AI Labs and former VP of engineering at OpenAI.
