Bengaluru-based end-to-end home design and decor service provider Livspace has raised an undisclosed amount from IKEA group franchisee, Ingka Group (Ingka Holding B.V and its controlled entities) for a minority stake.
The partnership is expected to enable the sharing of expertise between the two companies combining IKEA’s massive portfolio of products with Livspace’s technology platform. The funds will be used by the startup to develop new home interior solutions and products, market expansion and expanding offline retail footprint.
Launched in December 2014 by Anuj Srivastava and Ramakant Sharma, Livspace is a curated marketplace for homeowners and home designers that provides an end-to-end home design experience. Prior to this round, Livspace has raised $97.6 Mn from investors such as TPG Growth, Goldman Sachs, Jungle Ventures, Bessemer Venture Partners, and Helion Ventures.
The Growth Of Livspace
At Livspace, customers pay for purchasing home products including furniture, services, and accessories. The startup does not charge for the personalisation of the home decor, the custom-made interior design, or the last-mile installation process. In 2015, Livspace acquired startups DezignUp, Dwll.In, YoFloor, and Klozee, following which it launched the ‘home design automation platform’ in 2016.
In 2017-18, the company claims to have registered a 400% growth in gross revenue and achieved profitability across its previously launched markets. To fuel its expansion efforts, Livspace also plans to increase its offline retail footprint through both large and small-format Livspace Design Centers.
The centres offer a whole new brand experience and deep technology integration, but in a retail experience customers are familiar with. In addition, Livspace has also invested in growing a design partner community and a proprietary design-to-installation platform called Canvas.
In an earlier conversation, Livspace founders had told Inc42 that the company has built an in-house technology platform. It has a team of engineers, data scientists, and product managers who employ a combination of data science, algorithms, and industrial design to create experiences for homeowners and scale up the job of interior designers.
Livspace designs enable interior designers to plan the space in 2D on a floor plan. The plan can then be converted into a 3D design instantly at the click of a button. The designers can plan effectively and the homeowners can visualise the design effectively with a single, free tool on the cloud.
Livspace And IKEA Look To Collaborate
Anuj Srivastava, cofounder and CEO of Livspace is looking at collaboration possibilities with IKEA in areas such as catalogue and marketplace integration, retail technology, and online-to-offline innovations. “On the one hand, the investment gives us the opportunity to create one of the best omnichannel interiors and furniture purchase experience for homeowners. On the other hand, interior designers and vendors can anticipate a richer design and supply experience.”
IKEA launched its first India store in Hyderabad in August last year. The company invested $108.6 Mn (INR 800 Cr) so far to set up its 400K sq ft store in Hyderabad. It has the biggest Ikea restaurant anywhere in the world, with seating for 1,000 people.
IKEA has also announced the purchase of 10 acres of land in Gurugram, and plans to build another 400K sq ft store with parking for 1,000 cars. Ikea also plans to start online retail operations in India.
Other major startups like operating in this space include Urban Ladder, Homelane, Pepperfry and FabFurnish which are taking the home interiors to a different level.
The Indian home design and decor market were poised to grow from $13 Bn in 2010 to over $45 Bn by the end of 2017. By 2018, home furnishing market in India was expected to grow at CAGR of 8% by value to reach $5.29 Bn.