Ikea-backed interior design startup Livspace reportedly raises $60m

Ikea-backed home interior and renovation platform Livspace has raised roughly US$60 million in a round likely to close next month at around US$90 million to US$100 million.

Photo credit: Livspace

The investment included participation from Hong Kong’s Tahoe Investment Group, Singapore’s Mercer Investments and EDBI, Switzerland’s Kharis Capital, and Venturi Partners’ managing director Nicholas Cator, The Economic Times reported, citing regulatory filings sourced from Singapore.

Tech in Asia reached out to Livspace but the company declined to comment. “Livspace does not comment on market speculation,” a spokesperson for the startup said.

Livemint first reported about the development in December last year, saying that Livspace was in advanced talks to raise US$100 million at a valuation of over US$500 million, according to two people familiar with the matter. The report also said that the round is expected to be led by Kharis Capital and Venturi Partners.

Livspace looks to use the new funds to bolster its operations in Singapore and widen its presence beyond metro areas in India, with planned launches is Chandigarh, Kanpur, and Lucknow, the sources added.

Founded in 2015, the Singapore-based startup operates a platform where customers can select and buy furniture and home decor from various vendors. It also connects homeowners with interior designers, furniture makers, and home renovation experts.

See also: India’s Ikea-backed home decoration startup is ready to go global

It launched in the city-state late last year, marking the first phase of its Asia-Pacific strategy that includes more launches from 2020 onward. The company previously announced that it will set aside US$30 million to grow its business in the country.

Outside of Singapore, Livspace operates in nine cities in India: Bengaluru, Chennai, Hyderabad, Delhi, Gurgaon, Noida, Mumbai, Thane, and Pune.

In May 2019, the startup secured a strategic investment from the investment arm of Ingka Group, a strategic partner of the Ikea franchise. Prior to that, the company raised US$70 million in a series C funding round co-led by Goldman Sachs and TPG Growth in 2018.