Home design and renovation platform Livspace has raised $90 million, led by Switzerland-based investment management firm Kharis Capital and Nicholas Cator’s Venturi Partners, along with Peugeot Group’s holding company FFP, Pidilite Group, and Singapore-based EDBI.
Existing investors Ingka Investments, TPG Growth, Goldman Sachs, UC-RNT, and Bessemer Ventures also participated in the round.
ET was the first to report the development on January 24.
On Monday, Livspace’s rival HomeLane raised Rs 60 crore in equity and debt financing from Stride Ventures, Accel Partners, Sequoia Capital, Evolvence India and JSW Ventures.
These investments are a sign that investors are increasingly betting on specialized vertical marketplaces for large outcomes, at a time when the market for a horizontal e-commerce has been capped by Flipkart and Amazon.
Livspace last raised $70 million in 2018 led by private equity firm TPG Growth and Goldman Sachs. The company has raised about $200 million till date.
Livspace connects designers with customers as well as suppliers, and at the backend operates a very complex supply chain to maintain delivery timelines.
The company takes end-to-end ownership of a housing project right from design to manufacturing to installation. The business also operates brick-and-mortar design studios.
“We have done two things uniquely: first, digitization of large and complex home improvement industry verticals, and, second, integration of thousands of contractors, designers, and home improvement professionals as well as the largest brands and OEMs in this space,” said Ramakant Sharma, cofounder of Livspace. “This playbook has helped us expand rapidly and efficiently across markets,” he added.
With the latest investment round, Livspace is looking to enter dozens of new cities, including Lucknow, Kolkata and Ahmedabad.
It is also evaluating countries such as Australia, Malaysia and Indonesia and the Middle East as next markets where the interior and renovation industry is equally fragmented.
The company claims to have hit a gross revenue run rate of over $200 million in March and expects to grow into a $500 million business in the next two years. In India it has forecast that it will make profits next year.
“Their strength lies in the deep moats that they have created in areas such as their technology innovation, brand salience, ever-expanding supply chain and ability to build attractive unit economics across markets,” said Nicholas Cator, Managing Partner of Venturi Partners.
In May, the company laid off 450 people, or 15% of its workforce, as the Covid-19 pandemic and resultant nationwide lockdown hit business. Last year, Livspace launched in Singapore, its first international foray. The company counts IKEA’s largest franchise partner, Ingka Group, as an investor.
Livspace was founded in 2015 by former Google executive Anuj Srivastava and Ramakant Sharma, who was earlier with Myntra, along with Shagufta Anurag, founder of architectural design consulting firm Space Matrix.