Livspace Looks To Raise $100 Mn From Kharis Capital, IKEA, Others

Bengaluru-based home design and decor service provider Livspace is reportedly in advanced talks to raise $100 Mn at a valuation of over $500 Mn.

According to Livemint, the upcoming funding round for Livspace is expected to be led by Kharis Capital, a Europe-based investment management company. Singapore-based growth-stage investor, Venturi Partners, equity firm TPG Growth, Swedish furniture firm IKEA and Ratan Tata’s UC-RNT Fund are also expected to participate in the funding round.

With the funds, the home decor company plans to expand its footprint beyond metro cities in India and tap customers in cities such as Chandigarh, Kanpur and Lucknow. Additionally, the company is planning to expand its operations globally with entering the Singapore market.

Livspace will use the fresh capital to expand offline through its “experience centres” from the existing four stores to twelve to fifteen over the next one year.

Founded in 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. The company offers an online marketplace for home interior solutions and also offers software tools for designers to streamline their workflow.

Livspace has denied responding to queries sent by Inc42 regarding this funding round.

In an earlier conversation, the founders of Livspace had told Inc42 that the company has built an in-house technology. 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’s technologies enable interior designers to create a decorated space in 2D on a floor plan. The 2D 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 effectively with a single, free tool on the cloud.

Prior to this funding speculation, the company has raised $70 Mn in a Series C funding round led by US-based private equity company TPG Growth and global investment bank and active investor Goldman Sachs. The round also saw participation from Livspace’s existing investors — Jungle Ventures, Bessemer Venture Partners, and Helion Ventures.

In India, the major players in the furnishing space are Homelane, Urban Ladder, and Pepperfry. Other competitors in the interior-design space are furniture and home product rental startups such as RentoMojo, Rentickleand Furlenco. These companies allow customers to rent furniture, home decor items and electronic appliances against a monthly fee and security deposit.