Exclusive: With Reverse Flip In Cart, Livspace Nets INR 427 Cr From Singapore Parent

SUMMARY

The capital infusion is part of the reverse flipping process as Livspace prepares for an initial public offering (IPO), a person in the know told Inc42

Livspace is eyeing an India return this year and is likely to launch its IPO by late 2025 or early 2026

Founded in 2014, Livspace began its journey by offering new-age home interiors and renovation solutions to individuals and later expanded into commercial interior design and commercial real estate segments

Home decor startup Livspace has secured INR 427.21 Cr (around $50 Mn) in internal funding from its Singapore-based parent entity as it looks to move its domicile back to India, sources told Inc42.

The IKEA-backed startup’s board issued 1.85 Cr equity shares at INR 230 per share on a rights issue basis to raise the funds from Livspace Pte Ltd in Singapore, according to regulatory filings with the Registrar of Companies (RoC).

“The capital infusion is part of the reverse flipping process as the company prepares for an initial public offering (IPO),” one of the sources said requesting anonymity.

However, a definite timeline as to when Livspace is targeting to list its shares on Indian bourses could not be ascertained.

Inc42’s queries sent to Livspace and its cofounder Ramakant Sharma did not elicit any responses till the time of publishing this story.

Livspace Sets Sights On 2026 IPO

It is to be noted that Sharma told ET last year that Livspace was looking to launch its IPO by late 2025 or early 2026. The report also suggested that Livspace was eyeing an India return this year and had obtained in-principal board approval for the move.

To simplify and fast-track the reverse flipping process for Indian startups headquartered overseas, the Centre scrapped the requirement of clearance from the National Company Law Tribunal (NCLT) last September.

Livspace was among the first startups to seek approval for its reverse flip using the fast-track mechanism. Other examples include Dream Sports, the parent of fantasy gaming startup Dream11, which recently shifted its domicile to India from the US through a reverse merger with its Mumbai-based arm under this new regime.

Founded in 2014 by Sharma and Anuj Srivastava, Livspace began its journey by providing new-age home interiors and renovation solutions to individuals and later expanded into commercial interior design and commercial real estate segments.

Through its B2B offering Livspace For Business, the startup operates in categories across offices, retail, hospitality, and warehousing among others. Livspace has a presence in over 50 cities across the country and also caters to users in international markets such as Singapore and the Middle East. Using proprietary technology, it claims to have designed over 1.2 Lakh rooms and sold 50 Lakh SKUs through its platform.

Livspace counts the likes of KKR, Ingka Group (IKEA), Bessemer Venture Partners, Goldman Sachs, and TPG Growth among its backers. In 2022, it raised $180 Mn in a funding round led by KKR, which catapulted the startup to the unicorn status. In all, Livspace has raised around $433 Mn from investors.

In the run-up to its IPO, Livspace announced in February that it was reshuffling its top deck. While cofounder and CEO Srivastava was named the chairman of the startup’s board, Sharma was elevated to the position of chief executive (CEO) from chief operating officer earlier.

‘Reverse Flip’ Trend Grips Indian Startup Landscape

Livspace joins the long list of new-age tech startups that domiciled abroad to tap a global pool of capital, but now want to return home to capitalise on the country’s maturing startup ecosystem and IPO market.

Quick commerce unicorn Zepto and fintech giants PhonePe and Groww have already moved their holding companies to India. Earlier this month, Walmart-owned ecommerce major Flipkart also confirmed its intentions to shift its domicile back to India from Singapore ahead of its anticipated IPO.

April also saw fintech giant Pine Labs getting final approval from the NCLT for its homecoming. Several other startups, including Razorpay, Meesho, Eruditus, Freo, and KreditBee among others, are also at various stages of the transition.

The reverse flip trend is being fueled by the boom in new-age tech IPOs in the country. More than 20 startups, including the likes of Zepto, BlueStone, boAt, Urban Company, Physics Wallah, Smartworks, DevX and Captain Fresh, are gearing up for an IPO in 2025.

Electric mobility startup Ather Energy’s INR 2,626 Cr+ IPO opened for subscription today. It is set to become the second EV maker to go public after Ola Electric, which debuted on Dalal Street last August.