End-to-end home design and decor service provider Livspace 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. The startup plans to utilise the funds to expand its presence from seven cities to 13 by 2019.
Avendus Capital was the exclusive financial advisor to Livspace for this transaction. With the new round, the startup’s total capital raised till date has reached $97.6 Mn.
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. Customers only need to pay for buying home products including the furniture, services, and accessories. The startup does not charge for the personalised look (which customers can design online), the design service, or the last mile installation process.
Earlier in July, reports had surfaced that TPG may invest $40 Mn in Livspace. Over the last 18 months, the company claims to have registered a 400% growth in gross revenue and achieved unit-economics profitability across its previously launched markets.
Akshay Tanna, Principal, TPG Growth said, “Livspace is a ground-breaking company that is disrupting the fragmented interior-design-and-renovation ecosystem in India. They’ve registered strong growth in a short period of time, and we are confident that their approach has tremendous potential to extend across several markets.”
Anuj Srivastava, Co-founder and CEO, Livspace, said, “In an industry that has traditionally struggled with scale, we have created a first-of-its-kind, design-to-installation technology platform and a marketplace model that is highly scalable. The model can inherently deliver strong unit economics. We are thrilled to partner with TPG Growth and Goldman Sachs in our journey. Their understanding of global markets and deep expertise in accelerating growth-stage companies will help us build the next edition of Livspace.”
Livspace: Homing In On Growth With An Online-Offline Model
This August, Livspace launched operations in Hyderabad and claims to be on track to hit over $125-135 Mn in annualised gross revenue by March 2019.
To fuel its expansion efforts, Livspace also plans to increase its offline footprint through both large and small-format Livspace Design Centers. The company’s latest Design Centers, slated to launch next year, will offer a whole new brand experience and deep technology integration. In addition, Livspace will continue to invest in the growth of its design partner community and its proprietary design-to-installation platform, Canvas.
In an earlier conversation, founders had told Inc42 that Livspace 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 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 effectively with a single, free tool on the cloud.
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 is expected to grow at CAGR of 8% by value to reach %5.29 Bn.
The major players in the space are Homelane, Urban Ladder, and Pepperfry. Recently, Homelane, which raised $3.54 Mn (INR 24 Cr) from Brand Capital, opened its first experience centre in North India in Gurugram. The company claims that this is one of their largest offline stores, spread over 4,000 square feet. It is planning to invest close to INR 9 Cr for expansion in the region.
These technology-enabled home design startups are taking home interiors in India to a different level with their cutting-edge designs and end-to-end services. And it means a plethora of options for well-travelled, new-age Indians, who are looking for a seamless experience and world-class designs while doing up their homes.