Home Interior Startup Livspace Raises $70M in Series C Funding Led by TPG Growth and Goldman Sachs
Funds will be utilised to expand to newer markets, launch new Design Centers, further build capabilities on their design platform, Canvas and bolster the seller community
Anuj Srivastava, Co founder & CEO, Livspace
Livspace, a Bengaluru-based home interior and renovation platform, today announced that it has raised $70 million in Series C funding. The round was led by TPG Growth and Goldman Sachs, a global investment bank and active investor in India, and included participation from existing investors Jungle Ventures, Bessemer Venture Partners and Helion Ventures. This deal also marks the largest Series C round raised by a B2C vertical e-commerce company in India.
In a little over three years, since its launch in 2015, Livspace has emerged as the top organized player in India’s very fragmented home interiors and renovation market, which is expected to exceed $23 billion by 2022. Over the last 18 months, Livspace’s gross revenue has more than quadrupled and, the company also achieved unit-economics profitability across its previously launched markets. Livspace also boasts the region’s biggest seller community in this industry: it attracted applications from 25,000 interior designers and small design studios, 10% of which are now certified partners. Livspace services seven major metro areas in India where it delivers interiors, including kitchens, wardrobes, furniture, decor and provides all contracting services from flooring and false ceilings to painting. Operating at an unprecedented scale, the company completes a home interior project every two hours.
Livspace will utilize the funds to expand its operations to six more metro areas by 2019 for a total of 13, while achieving deeper penetration in existing markets. This August, Livspace launched operations in Hyderabad and is on track to hit over $125-135 million in annualized gross revenue by March 2019.
To fuel its expansion efforts, the firm plans to grow its offline footprint through Livspace Design Centers, the company’s experiential stores that play a key role in its omnichannel strategy. The latest Design Centers—both small and large formats—will offer a new brand experience to its consumers. In addition, the company will continue to invest in the growth of its design partner community and vendor marketplace. On the product side, new home interior solutions and products, together with new technology innovations, are planned for both homeowners and design partners. They will be delivered through Livspace’s proprietary design-to-installation platform, Canvas.
Livspace’s Co-founder and CEO Anuj Srivastava believes that the support from some of the world’s best-known investors in this round will help propel Livspace to its next phase of growth. “Our vision is to evolve Livspace into one of the biggest and most admired consumer internet companies to emerge out of India,” said Mr. Srivastava. “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,” he explained. “We are thrilled to partner with TPG Growth and Goldman Sachs in our journey,” he added. “Their understanding of global markets and deep expertise in accelerating growth-stage companies will help us build the next edition of Livspace.”
Akshay Tanna, Principal, TPG Growth said, “Livspace is a groundbreaking 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.”
“Livspace is an innovative and fast-growing Indian B2C internet company,” said Niladri Mukhopadhyay, a Managing Director at Goldman Sachs. “We feel the company’s platform approach, which integrates products and services while leveraging technology to provide customized consumer solutions, has allowed it to become a leading brand in the home improvement ecosystem,” observed Mr. Mukhopadhyay. Talking about the investment in Livspace, he added, “This investment is in line with our focus on backing excellent management teams that uniquely address the needs and aspirations of India’s growing middle class.”
Avendus Capital was the financial advisor to the company for the latest fund raise. Before this round of funding, Livspace had raised a total of $33.6 million from Jungle Venture Partners, Bessemer Venture Partners, Helion Ventures, and UC-RNT.
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