Arcade, a generic AI market for designing jewelry, is expanding its offering to include household items starting with rugs.
The company also introduced a new feature called “Match My Room” on Monday. This allows the design to complement existing colors and styles so that users can upload photos of their rooms.
In addition to this expansion, Arcade announced a $25 million Series A funding round, increasing its total amount to $42 million.
Like Arcade’s jewelry design generator, the rug creation tool utilizes mid-journey and stable spread. The user selects the rug material and enters a text prompt to explain the desired design. Once your design is generated, you will be paired with the manufacturer and send a free sample to the creator before you buy.
Based on our testing, the rug starts at around $400 to be the most affordable material with a 3×9 hand-loaded wool option. Prices for high-end materials such as cashmere, alpaca and mohair will rise. However, arcades claim they offer more affordable options than luxury rug retailers who charge thousands of dollars.

The “Match My Room” feature allows users to upload photos of the space. AI analyzes color matching, but it cannot successfully replicate the patterns of other ornaments in the image, like pillows and blankets. Overall, however, it is a handy tool to ensure that the colour accents of the rug will tie together with other furniture.
For users who want to create designs for pure fun, Arcade works similarly to Pinterest boards and introduces products with similar themes such as Hollywood-inspired earrings. Users can also view and purchase other dream boards.
Additionally, Arcade has a seller program that allows you to earn a 5% commission on each product’s sale. This is up from the previous 2.5%. Users can earn even more by participating in Arcade’s affiliate program.
The company recently launched a new entrepreneurial program aimed at helping content creators unlock higher commission rates. Leading media and influencers with over 25,000 followers are encouraged to sign up by emailing Arcade’s marketing team.
Despite launching beta jewelry only in September 2024, the arcade claims it has generated 650,000 jewelry designs. However, the company has not disclosed the number of users interested in purchasing these designs, nor has it revealed the revenue from the seller’s committee.
The arcade is led by Mariam Naficy, who previously founded cosmetics retailer Eve and Minted, the design marketplace.
The Series A round was led by Laura Chau (Canaan Partners) with participation from Kirsten Green (Forerunner).
New capital will be allocated to employment, platform development and implementation of new product categories such as ceramics and pillows. Naficy previously told TechCrunch that additional categories may include apparel and leather products. According to its website, the chain belt is next.
Arcade previously raised $17 million from Ashton Kutcher (Sound Ventures), offline venture Reid Hoffman (co-founder of LinkedIn). Other investors include David Luan, CEO of Inspired Capital, Torch Capital, Adept AI Labs and former Vice President of Engineering at Openai.
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