Livspace raises $90 million in Series D funding round

Our Bureau Bengaluru | Updated on September 03, 2020

Eyes Asia-Pacific expansion and India profitability in 2021

Home interiors and renovation platform, Livspace announced that it has raised $90 million in an oversubscribed round led by Kharis Capital, a Switzerland-based investment firm focussed on managing selective direct private equity investments, and Venturi Partners, an investment platform targeting growth investments in the consumer space in India and South-East Asia.

The Series D round also included participation from new investors including FFP, Peugeot Group’s holding company and EDBI. Existing investors Ingka Investments, TPG Growth, Goldman Sachs, UC-RNT and Bessemer Ventures also participated.

Livspace currently serves nine metro areas in India (Bengaluru, Chennai, Hyderabad, Delhi, Gurugram, Noida, Mumbai, Thane and Pune) and expanded into APAC with its Singapore market entry in October 2019. Till date, the company has raised over $200 million.

The latest capital infusion will be utilised to fund new market expansion, further development of the technology platform, expansion of supply chain, creation of new market offerings and private labels in APAC.

Geographic expansion

In India, Livspace is looking at entering dozens of new cities including Lucknow, Kolkata and Ahmedabad, where homeowners are awaiting the launch of an organised, internet-first brand for their home renovation needs, said a company statement. On the other hand, Livspace is deeply evaluating countries such as Australia, Malaysia and Indonesia in the APAC region and West Asia as its next markets, where the interior and renovation industry is equally fragmented and presents a ripe opportunity for Livspace’s platform-based market entry, the statement added.

Since its last funding round by Ingka Capital, TPG Growth and Goldman Sachs, Livspace has quadrupled its revenue, doubled its margin, and has established itself as the market leader in Singapore. The company hit a gross revenue run rate of over $200 million in February 2020 and is projected to grow into a $500 million business in the next 24-30 months. Its India operations are expected to be profitable in 2021, the statement further said.

Speaking about the investment, Ramakant Sharma, COO and co-founder of Livspace, said: “We are very excited to partner with some of the top investors in Europe and South-East Asia, and these relationships have been built over the past couple of years. Our vision is to create the world’s most innovative home interiors and renovation platform. Livspace has done two things uniquely: first, digitisation of large and complex home improvement industry verticals, and second, integration of tens of thousands of contractors, designers and home improvement professionals as well as the largest brands and OEMs in this space. This playbook has helped us expand rapidly and efficiently across markets.”

“I have known Anuj (co-founder Anuj Srivastava) and Ramakant since 2018 and have been very impressed with their platform-first vision and execution across markets. We strongly believe that Livspace is poised to be the most successful company in the online home improvement space, which is collectively a market worth multi-hundreds of billion dollars. Their strength lies in the deep moats that they have created in areas such as their technology innovation, brand salience, ever-expanding supply chain and ability to build attractive unit economics across markets” said Nicholas Cator, Managing Partner at Venturi Partners.

Founded in 2014 by Srivastava and Sharma, Livspace has designed over 20,000 homes with one family choosing Livspace for their home interiors every hour, the statement said.

Published on September 03, 2020

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