Ikea-backed interior design startup Livspace raises $60m: Report

Photo: Unsplash

Online home design firm Livspace has raised about $60 million from Hong Kong-based Tahoe Investment Group, and Singapore-domiciled Mercer Investments and EDB Investment, along with Kharis Capital, a European investment management firm, and Venturi Partners’ managing director Nicholas Cator, The Economic Times reported quoting regulatory filings.

The funding is part of a bigger $100 million round, which is expected to close soon. Existing backers Goldman Sachs, private equity firm TPG Growth, Swedish furniture firm Ikea, Ratan Tata’s UC-RNT Fund are likely to join the round, DealStreetAsia recently reported.

Ikea, through Ingka Investments, picked up a minority stake in Livspace for an undisclosed amount in May last year. Less than a year prior, the Bengaluru-based company raised $70 million in a round led by TPG Growth and Goldman Sachs. Existing investors Jungle Ventures, Bessemer Venture Partners and Helion Ventures had also participated in the round.

The latest funding brings Livspace’s total funding to about $150 million to date.

Livspace, which competes with the likes of Sequoia Capital-backed HomeLane, as well as furniture e-retailers, Pepperfry and Urban Ladder, was founded in 2015 by former Google executive Anuj Srivastava and his friend Ramakant Sharma, who was earlier with Myntra. It claims to be India’s largest home interior and renovation platform.

The company brings together homeowners, interior designers and vendors, allowing homeowners to design their homes in a predictable and fuss-free way. It offers its services across seven cities in India and boasts of over 5000+ customers and 2000+ interior designers.

The startup plans to use the funding to expand its footprint beyond metros in India, and to ramp up its operations in Singapore.

In October 2019, Livspace announced an investment of $30 million to grow its business in Singapore. The company plans to base over 250 employees in Singapore, including central platform teams. Over the next two years, Livspace aims to onboard thousands of freelance designers, contract manufacturers, OEMs and brands to build the e-commerce supply chain, it then said in a statement.

Outside of Singapore, Livspace currently serves nine metro areas in India. It has a network of 20 design centres and experience apartments across the country. The company claims to be working with 3,500 registered designers and has designed 20,000 homes. In India, Livspace has over 80% market share and is more than doubling revenues every year.

Investors are increasingly getting attracted to these specialised vertical marketplaces as they believe these companies are better poised to deliver profitable returns.

Last month, HomeLane raised $30 million in a fresh round of funding to fuel its expansion into home renovation as a service and to expand into 10 new cities. The startup’s Series D round was led by new investors, including a Dubai-based investor’s private equity firm Evolvence India Fund (EIF), Pidilite Group and New-York based investment firm FJ Labs, with participation from Sequoia Capital, Accel Partners, and JSW Ventures.

Meanwhile, both Pepperfry and Urban Ladder are also expanding their offline stores, adding to their inventory and beefing up their supply chain. Pepperfry is reportedly gearing up for an initial public offering (IPO) in 12-15 months.

 

 

 

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.