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Arcade AI marketplace expansion stems from a generative AI marketplace that has seen more offerings, from designing jewelry to including home goods, starting with rugs.
The new feature introduced by the company on Monday is called “Match My Room.” This update lets users upload a photo of their room so their design can beautify the existing colors and style.
With the Arcade AI marketplace expansion, its $25 million Series A funding brings the total amount raised to $42 million.
Like Arcade’s jewelry design generator, the rug creation tool leverages Midjourney and stable diffusion. Users select the rug material and enter a text prompt describing the desired design. Once the design is generated in Arcade AI marketplace, it’s paired with a manufacturer, who will send the creator a free sample for approval before purchasing.
Based on our testing, rugs start at around $400 for a 3×9 hand-tufted wool option, which is the most affordable material. Prices increase for higher-end materials such as cashmere, alpaca, and mohair. However, Arcade claims to offer more affordable options than luxury rug retailers that charge thousands of dollars.
The Arcade AI Marketplace expansion contains a “Match My Room” feature, which allows users to upload photos of their space. While the AI analyzes color matching, it can’t successfully apply patterns from other decor items in the image, such as the pillows and blankets. Nevertheless, it helps ensure the rug’s color accents complement other furniture.
For users looking to create designs for pure enjoyment in the Arcade AI marketplace, Arcade offers “Dream Boards,” which function similarly to Pinterest boards, showcasing products with similar themes, such as Hollywood-inspired earrings. Users can also browse other Dream Boards and make purchases.
Additionally, the seller program on the Arcade AI marketplace allows people to earn a 5% commission for each product sale, an increase from the previous 2.5%. Users can earn even more by joining Arcade’s affiliate program.
The company recently launched a new entrepreneur program aimed at helping content creators open higher commission rates. Major media outlets and influencers with over 25,000 followers are encouraged to sign up by emailing Arcade’s marketing team.
Recall that the company launched its beta jewelry offering in September 2024; Arcade affirms to have generated 650,000 jewelry designs. However, the company didn’t declare its users’ interest in purchasing these designs. It also didn’t disclose the commission earnings of sellers.
Arcade is spearheaded by Mariam Naficy, who previously founded cosmetics retailer Eve and design marketplace Minted.
Laura Chau (Canaan Partners) led the Series A round, and Kirsten Green (Forerunner) participated.
The new capital will be allocated toward hiring, platform development, and introducing new product categories like ceramics and pillows. Naficy has previously mentioned that additional categories may include apparel and leather goods. According to its website, chain belts are also following.
Before the Arcade AI marketplace expansion, it had 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 vice president of engineering at OpenAI.
