Ernesta Raises $20M in Series B Funding to Expand Custom Rug Platform

The home is where people express taste, personality, and precision. Yet for decades the rug buying experience has felt oddly imprecise. Walk into enough homes, design studios, or renovation projects and you start to notice the disconnect. The U.S. rug market moves about 100M pieces a year, yet the process of actually buying one still feels like a guessing game with dimensions, lead times, and limited sizing options. That gap between demand and experience is where smart operators start paying attention.

Enter Ernesta, the New York based custom sized rug company founded in 2022 by Peloton co-founders John Foley, Hisao Kushi, and Yony Feng. This week the company rolled out a $20M Series B funding round led by Addition, with participation from True Ventures and Platform Capital Management. That brings total funding to $45M. When investors like Lee Fixel and Jon Callaghan lean into a category most people barely think about, it usually means the surface story is missing the real plot.

Ernesta focuses on custom sized rugs and stair runners cut precisely to fit real spaces, not showroom guesses. Homeowners and interior designers can order rugs tailored to the room with delivery in as little as 2 weeks. No endless sizing compromises. No hoping the rectangle works. Just precision where the floor meets reality. In an industry that has historically sold standard shapes into irregular homes, that shift alone starts to pull a loose thread in the market.

Inside the company, the leadership team reads like people who know how to scale complicated machines. John Foley leads as Founder and CEO, with co founders Hisao Kushi and Yony Feng building the foundation behind the scenes. The executive bench includes President Alan Smith, CFO Alexandria Norton, and CSO Jen Parker, each focused on turning a historically fragmented category into something that actually behaves like a modern retail platform.

The strategy is not subtle. Ernesta blends digital convenience with physical showrooms so customers can see, touch, and feel what they are buying before a custom piece lands on their floor. At the same time the company is investing in its Trade Portal, manufacturing technology, and tools that allow interior designers to manage samples and custom projects without turning every order into a logistical puzzle.

The next chapter sits in physical expansion. Ernesta plans to grow to 30 showroom locations nationwide by the end of 2027 while continuing to serve both ambitious homeowners and the design professionals who shape the spaces we live in. Combine that footprint with technology designed specifically for custom production and suddenly a category built on fabric begins to look a lot more like software wrapped in wool.