Police say a group broke into a home on Powlett Street in Melbourne at about 11.50pm.
They allegedly brandished weapons and threatened three people in the home before setting a car on fire and leaving.
9News understands residents of the home received a surprise knock on the door just before midnight on Sunday.
They were greeted by six armed men who stormed the home
One of the residents, a 27-year-old, was stabbed in the upper thigh.
Two other men, aged 31 and 26, were also there but were uninjured.
On the way out of the home, the group allegedly smashed the victim’s car windows before setting the car on fire.
Neighbour Daniel Dinesh tackled the flames with a hose before emergency services arrived.
“I’m really scared and even their family got scared yesterday and everyone was in a panic,” he told 9News.
“They were also shocked because it’s not expected for them as well.”
CCTV footage has shown a dark grey car driving past seconds after the home invasion.
The footage has since been handed over to police.
9News understands the victims, who aren’t known to police, are yet to speak to investigators.
Detectives still don’t know if it was a targeted attack or a case of mistaken identity.