Friday, April 26

Online Home Design Startup Livspace Raised $70 Million in Series C Funding

Online home design and décor company Livspace has raised an amount of $70 million in a series-C financing round. The particular round was led by private equity firm TPG Growth and Goldman Sachs. This has made it one of the largest funding rounds in the vertical e-commerce space in the recent times.

The funding round also witnessed participation from investors such as Jungle Ventures, Bessemer Venture Partners and Helion Ventures. With this round, the valuation of the four-year-old startup has reached around $250-300 million.

The funds raised through the round are being planned to be utilized in the process of strengthening the company’s offline footprint along with marketing and branding spends.

Talking about the details, the company claims to have designed close to 6,000 homes since its establishment. Founded in 2014, the startup expects to close this fiscal year with an annualized revenue run rate of $125-135 million. Livspace has seen four times increase in its top line over the past 18 months, with a number of active homes under redesign tripling from around 500 last year to 1,500-1,600 right now.

The company claims to be profitable in Bengaluru, Mumbai and Delhi with its offerings making approximately 40% contribution margin. It is also planning to expand its operations in Pune and Chennai in the coming months. Livspace recently rolled out operations in Hyderabad.

Livspace operates four large and 20 mini experience centres, and expects to double this by the end of the fiscal year 2018-19 to almost 50 with a mix of large and small centres. It also has plans to foray overseas.