Arcade, a generative AI marketplace known for its jewelry design tools, is stepping into the home decor space. The company has launched a new feature allowing users to create custom rugs and is rolling out an AI-powered tool called “Match My Room.”
With this expansion, Arcade aims to make AI-driven home customization more accessible. The new tool lets users upload a photo of their space, and the AI suggests rug designs that complement the room’s existing colors. While it can match color schemes, it doesn’t yet replicate patterns from other decor elements like blankets or pillows.
The rug design process is similar to Arcade’s jewelry generator. Users choose a material, enter a text prompt to describe their ideal rug, and AI generates a design. The platform then connects them with a manufacturer, who provides a free sample before final purchase. Prices start at around $400 for a 3×9 hand-tufted wool rug, with higher-end options available in cashmere, alpaca, and mohair. Arcade claims its prices are significantly lower than high-end retailers that charge thousands for custom rugs.
Alongside this product expansion, Arcade has secured a $25 million Series A funding round, bringing its total funding to $42 million. The round was led by Canaan Partners’ Laura Chau, with participation from investors like Forerunner’s Kirsten Green. The new capital will be used to expand the platform, hire talent, and introduce new product categories, including ceramics and pillows. Future expansions may also include apparel and leather goods.
Beyond its design tools, Arcade has launched a seller and affiliate program, offering creators a 5% commission on sales, up from the previous 2.5%. Content creators with large followings can also join Arcade’s entrepreneur program for even higher commission rates.
Since its beta jewelry launch in September 2024, Arcade has generated over 650,000 jewelry designs, though the company hasn’t disclosed how many have been sold. Arcade was founded by Mariam Naficy, the entrepreneur behind Minted and Eve. Previous investors include Ashton Kutcher’s Sound Ventures, LinkedIn co-founder Reid Hoffman, and Adept AI Labs CEO David Luan.
With AI continuing to reshape e-commerce, Arcade’s expansion into home goods signals a broader trend in custom, AI-powered product design.
