Ikea-backed home design startup Livspace lays off 450 staff in India

Livspace, an interior design marketplace, has laid off 15% of its workforce in India, or about 450 people, as it steers towards a more “focused and leaner” direction. The decision was made after the startup experienced Covid-19’s “sudden” impact on its business, it told Tech in Asia in an email statement.

Photo credit: Livspace

“Letting go of our employees […] is one of the most difficult decisions that we had to take,” said Anuj Srivastava, co-founder and CEO at Livspace.

Affected employees and their families will receive extended medical coverage for several months. Laid-off staff will also receive one month’s salary, one to four weeks of extra pay, and outplacement services.

The company, meanwhile, assured that no downsizing measures are planned for its Singapore office, where its business has grown and is “looking strong.” It launched in the city-state last year.

Founded in 2014, Livspace offers end-to-end home design services, connecting interior designers, vendors, and customers in one platform.

Looking forward, the company said it’s concentrating its resources on further developing its tech platform and category and supply chain, as well as expanding across key international markets. It just started operations in Bangalore and Gurgaon and is set to deliver to “hundreds of homes in the coming weeks,” according to the statement.

In an interview with Inc42, Srivastava said that Livspace is projecting profitability, given the funding it has in the bank.

It was reported earlier this year that the company raised roughly US$60 million from Tahoe Investment Group, Mercer Investments, and EDBI, among others. Its earlier investors include Ikea as well as Goldman Sachs and TPG Growth, which co-led its US$70 million series C round in 2018.