Livspace gears up for major expansion after $90m raise

Singapore-based proptech startup Livspace said it has raised US$90 million in a series D round led by Switzerland’s Kharis Capital and India- and Southeast Asia-focused Venturi Partners.

Livspace CEO Anuj Srivastava / Photo credit: Livspace

The oversubscribed funding round also included participation from new investors EDBI and FFP, as well as existing backers Ingka Investments, TPG Growth, Goldman Sachs, UC-RNT Fund, and Bessemer Ventures.

Founded in 2014, Livespace provides a platform where users can purchase furniture and home decor from a number of different vendors. It also offers end-to-end home design services and connects homeowners with interior designers.

“This new round of investment goes on to endorse our vision and our innovative platform approach,” said Livspace co-founder and CEO Anuj Srivastava. “The Livspace model is unique and allows us to launch new offerings and expand to new markets rapidly and efficiently.”

What are its future plans? With the new funds, Livspace said it plans to further invest into the development of its tech platform and put money into its exploration of visualization and omnichannel technology.

“Up until now, we have built a platform to create a unique experience for [the platform’s] three participants – consumers, designers, and vendors,” Srivastava tells Tech in Asia. “In this next phase, the investment is earmarked for creating richer experiences for brands, large original equipment manufacturers, and fitted modular furniture manufactures (kitchen and wardrobe) on the platform.”

In addition, the company also said it aims to use the fresh capital to bankroll its market expansion, create new market offerings, and bolster its supply chain in Asia Pacific.

Currently, Livspace is evaluating countries in the Middle East and those such as Australia, Malaysia, and Indonesia in the APAC region as its next markets. The startup also said that it’s exploring dozens of new cities in India to expand into.

How much traction has it gotten? Since its last fundraise in May 2019, the company has quadrupled its revenue and doubled its margins, said Srivastava. The head chief added that Livspace has already established a leading position in Singapore’s proptech landscape after expanding to the city-state in October of last year.

“Moreover, we have registered a 400% growth in revenue in the last two financial years, as well as doubled our contribution margin in the last 18 months,” said Srivastava.

Looking ahead, the CEO said Livspace is projected to grow into a US$500 million business in the next 24 months to 30 months after achieving a gross revenue run rate of over US$200 million in February. The company’s operations in India are also expected to be profitable next year, he noted.

What challenges has it faced recently? Much like most companies, Livspace wasn’t safe from the economic impacts of Covid-19. The startup in May laid off 15% of its workforce in India, or about 450 people, after experiencing the pandemic’s “sudden” impact on its business.

Four months after, however, the outlook for internet-brands such as Livspace has been looking positive, Srivastava said.