Bengaluru-based end-to-end home design and decor service provider Livspace has raised an undisclosed amount from IKEA group franchisee, Ingka Group (Ingka Holding B.V and its controlled entities) for a minority stake. Ingka group is a strategic partner in the IKEA franchise system, representing 90 percent of total IKEA retail sales through 367 stores in 30 markets, including India.
In September 2018, Livspace had raised Series C funding of $70 million in a round led by TPG Growth and Goldman Sachs, and included participation from existing investors Jungle Ventures, Bessemer Venture Partners, and Helion Ventures. Before Series C round of funding, Livspace had raised a total of $33.6 million from Jungle Venture Partners, Bessemer Venture Partners, Helion Ventures, and UC-RNT.
Livspace said in a statement that it will deploy its newly-raised funds across areas such as developing new home interior solutions and products, market expansion, as well as to grow its offline footprint.
Launched in December 2014 by Anuj Srivastava and Ramakant Sharma, Livspace is a curated marketplace for homeowners and home designers that provides an end-to-end home design experience. In 2016, the startup launched Canvas, its proprietary design-to-installation platform and a cloud platform that creates experiences for homeowners and scales the job of interior designers.
Livspace currently serves nine metro cities in India including Bengaluru, Chennai, Hyderabad, Delhi, Gurugram, Noida, Mumbai, and Pune. The company has a network of four design centers and 15 experience apartments across the country.
Anuj Srivastava, Co-founder and CEO of Livspace said, “Livspace aims to make good living accessible to millions. This investment is a step in that direction. On one hand, the investment gives us the opportunity to create one of the best omni-channel interiors and furniture purchase experience for homeowners. On the other hand, interior designers and vendors can anticipate a richer design and supply experience.”
Krister Mattsson, Head of Ingka Investments, Ingka Group, said that, “Convenience and personalisation are becoming increasingly important to the future of home furnishing and customers’ life at home, and we believe Livspace has created a digital platform that has the potential to transform a customer’s home furnishing journey. This minority investment aligns closely with the digital direction of Ingka Group and our core business, IKEA Retail, and we are looking forward to exploring new opportunities together with Livspace”.
Other major startups like operating in this space include Urban Ladder, Homelane, Pepperfry and FabFurnish which are taking the home interiors to a different level. The Indian home design and decor market were poised to grow from $13 Bn in 2010 to over $45 Bn by the end of 2017. By 2018, home furnishing market in India was expected to grow at CAGR of 8% by value to reach $5.29 Bn.