Livspace has invested over US$5.5 million in TplusA India, a Bengaluru-based premium furniture hardware and accessories supplier.

Founded in early 2023 by industry veteran Anil Goel, TplusA partners with leading furniture makers and offers fittings via global brands and its own line.

The round also included personal investments from Livspace founder and CEO Ramakant Sharma and Kedaara Capital founder Nishant Sharma.

Ramakant Sharma said the deal aligns with Livspace’s strategy to strengthen supply-chain integration and create a full home-improvement ecosystem in India.

TplusA plans to use the funds to build a state-of-the-art manufacturing facility in Madhya Pradesh as part of its “make in India” drive.

🔗 Source: YourStory

🧠 Food for thought

1️⃣ Platform companies are vertically integrating supply chains to control costs and quality

Livspace’s investment in TplusA reflects a broader strategy where successful platform companies acquire or invest in their suppliers to gain more control over their operations.

The company has raised over $103 million from major investors including TPG Growth and Goldman Sachs, giving it the financial firepower to make strategic supply chain investments1.

This approach allows Livspace to optimize costs while ensuring quality standards, as TplusA offers European-quality fittings at lower costs through local manufacturing.

The timing aligns with Livspace’s rapid expansion, as the company achieved 400% growth in gross revenue over 18 months leading up to its 2018 funding round2.

By investing in hardware suppliers, Livspace can better control the end-to-end customer experience while potentially improving margins across its home interior projects.

2️⃣ Make in India initiatives are driving manufacturing investments in furniture hardware

TplusA’s plan to build a manufacturing plant in Madhya Pradesh taps into India’s broader push to become a global manufacturing hub.

The Make in India initiative, launched in September 2014, aims to increase manufacturing’s share of GDP to 25% and has attracted significant foreign direct investment in the sector3.