KKR-backed Livspace posts 85% revenue growth, targets profitability in FY 24

Photo credit: Livspace

Livspace, an India-based home interiors and renovation unicorn, posted US$138 million in revenue for the financial year ended March 31, 2023, marking a nearly 85% year-over-year growth. 

“While our topline revenue has nearly doubled, we are equally proud of our expanded gross margin,” Ankit Shah, chief strategy officer at Livspace, told Tech in Asia in a recent interview. 

Shah attributed the growth to key factors such as its expansion across cities in India and Southeast Asia and efforts to target higher-income consumers.

Founded in 2014, the KKR-backed firm offers tech-enabled interior design and renovation services, positioning itself as an Amazon-like marketplace for home decor.

One of Livspace’s notable offerings is Canvas, a SaaS platform that lets designers engage with their customers. It operates in India, Singapore, Malaysia, and the Middle East. 

According to Shah, around 80% of Livspace’s business comes from India, while Singapore accounts for most of its business in Southeast Asia. 

Livspace’s expenses grew by roughly 40% to US$151 million in FY 2023. However, the company cut its losses for the financial year by 28% to US$95.7 million, mostly due to improvements in gross margins – the difference between revenue and cost of sales.

Shah said this improvement mainly came off the back of its investments in its supply chain and sourcing capabilities, adding that the company wants to hit profitability in FY 2024.

In March 2023, the company laid off 100 employees. At the time, its spokesperson told Tech in Asia that the move was part of “normal adjustments and/or performance management parameters.”

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