The home furnishings industry has long offered consumers two unsatisfying options at opposite ends of the market: mass-produced standard-sized rugs that rarely match a room’s actual dimensions, or expensive custom work accessible only through the interior design trade. Standard rug sizing – 5×8, 8×10, 9×12 – reflects manufacturing convenience rather than the irregular layouts of real apartments and homes, leaving millions of buyers to choose between an imperfect fit or no rug at all. Ernesta fills that gap with a direct-to-consumer platform that custom-cuts rugs to a buyer’s exact measurements – down to the inch – across 200+ curated styles in wool, jute, sisal, and performance materials, at price points accessible to both homeowners and interior designers. The company serves both audiences through an omni-channel model that pairs e-commerce with a growing network of experiential showrooms offering full-service capabilities including stair runners, fireplace cutouts, and on-site custom fittings – a service depth that purely digital competitors cannot match. In just three years since its 2022 founding, Ernesta has grown into the largest custom-sized rug retailer in the United States, doubling revenue year over year in a domestic rug market that moves more than 100 million units annually without a single dominant national brand.
AlleyWatch sat down with Ernesta Cofounder, serial entrepreneur (founded Peloton) and CEO John Foley to learn more about the business, its future plans, the company’s recent funding round that brings total funding raised to $57.5M, and much, much more…
Who were your investors and how much did you raise
Ernesta has raised $20 million in Series B financing led by Addition, with participation from existing investors True Ventures and Platform Capital Management.
Tell us about the product or service that Ernesta offers.
What inspired the start of Ernesta?
Ernesta was founded to modernize the rug-buying experience, which we saw as overly complex, expensive, and difficult to navigate. We set out to make high-quality, custom-sized rugs more accessible through a streamlined process, design-forward collections, and an omnichannel shopping model that helps customers and designers confidently complete their homes with custom rugs.
How is Ernesta different?
Ernesta has has quickly emerged as the largest custom-sized rug retailer in the United States. We provide high-quality, custom-sized rugs delivered quickly and priced competitively. The brand also now offers full-service installation and custom project support, including stair runners, fireplace cutouts, on-site custom fittings and more, in every market where there are showrooms.
What market does Ernesta target and how big is it?
The U.S. rug market is large but highly fragmented, with more than 100 million rugs sold annually and no dominant national consumer brand.
What are the milestones you plan to achieve in the next six months?
By the end of 2026, Ernesta plans to have 15 showrooms and 30 by the end of 2027
Where do you see the company going now over the near term?
Ernesta has seen exponential growth, doubling year over year. In the near term, Ernesta plans to build the leading brand in the U.S. rug market through a growing omni-channel platform for both interior designers and homeowners that combines digital tools with experiential showrooms.
What’s your favorite spring destination in and around the city?
As someone who loves design and great experiences, Dante in the West Village is always a good place for afternoon conversation and a quiet cocktail. And Spring might be the best time to sit outside and enjoy Dante.
