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Livspace raises US$90m in Series D round for Asia-Pacific expansion

Livspace raises US$90m in Series D round for Asia-Pacific expansion

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3 -min read
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INTERIOR design and home renovation platform Livspace on Thursday said it has raised US$90 million in an oversubscribed round led by Switzerland-based private equity firm Kharis Capital and Singapore's Venturi Partners.

New investors EDBI and Peugeot Group's holding company FFP also participated in the round, along with existing investors Ingka Investments, TPG Growth, Goldman Sachs, UC-RNT and Bessemer Ventures.

The fresh funds will be used to develop its current platform, expand into new markets, create new products, as well as expand its supply chain in the Asia-Pacific, it said.

The company is eyeing markets such as Australia, Malaysia, Indonesia and the Middle East next, where the interior design and renovation industry is "fragmented", it said. It is also looking to establish a presence in dozens more cities in India such as Kolkata, Lucknow and Ahmedabad.

The Singapore-based company, which was founded in 2014, operates a platform where homeowners can connect with various interior designers, furniture makers and contractors, all from one place. They can also select and buy furniture and home decor from various vendors.

Chief executive and co-founder Anuj Srivastava told The Business Times that he remains "cautiously optimistic" that the business will return to pre-Covid numbers in the upcoming month or so, as more homeowners look towards online platforms for "greater transparency in their renovation and design process".

Since its last funding round, the startup said it has "quadrupled its revenue and doubled its margin", while hitting a gross revenue run rate of over US$200 million in February this year despite headwinds from the coronavirus pandemic.

Mr Srivastava added that by the next year, Livspace's operations in India will likely be Ebitda-positive (earnings before interest, taxes, depreciation and amortisation), while operations in Singapore are likely to be Ebitda-positive towards the later part of 2021.

He said that this is achievable since Livspace is built upon traditionally profitable but fragmented businesses such as interior design and renovation, which the platform then aims to consolidate and scale.

"The Livspace model allows us to launch new offerings and expand to new markets rapidly and efficiently," said Mr Srivastava. "We have the ability to digitise the very large and complex home improvement industry verticals and integrate thousands of contractors, designers, home improvement professionals, and some of the largest brands and manufacturers on our platform."

The startup then earns by taking a cut from the vendors on its platform, and also sources furniture from suppliers and manufacturers to sell as private-label products to customers, said the chief executive.

Chu Swee Yeok, chief executive officer and president of EDBI, said: "In addressing the evolving needs of tech savvy consumers and businesses, Livspace is contributing to the digitalisation of our local built environment industry."

Nicholas Cator, managing partner at Venturi Partners, added: "We strongly believe that Livspace is poised to be the most successful company in the online home improvement space, which is collectively a market worth multi-hundreds of billion dollars.

"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."

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