TPG Growth and Goldman Sachs invest $70 Million in Livspace
Livspace targets $125–135 million in annualized gross revenue by March 2019
Home interior and renovation platform, Livspace has closed a $70 million Series C funding round, led by investment funds TPG Growth and Goldman Sachs. The company’s existing investors — Jungle Ventures, Bessemer Venture Partners and Helion Ventures — also participated in the round.
Livspace currently serves seven metro cities in India including Bangalore, Mumbai, Delhi and Hyderabad. The company will utilize the funds to expand its operations to 6 more Indian metro areas by 2019 for a total of 13, while achieving deeper penetration in existing markets. Livspace began operations in Hyderabad in August and plans to hit over $125–135 million in annualized gross revenue by March 2019.
To fuel its expansion efforts, the firm plans to grow its offline footprint through Livspace Design Centers, the company’s experiential stores that play a key role in its omnichannel strategy. In addition, the company will continue to invest in the growth of its design partner community, which includes interior designers and small design studios, as well as its vendor community which comprises brands, contractors and service partners. On the product side, new home interior solutions and products, together with new technology innovations, are planned for both homeowners and design partners. They will be delivered through Livspace’s proprietary design-to-installation platform, Canvas.
Livspace was launched in 2015 by consumer-Internet industry veterans Anuj Srivastava and Ramakant Sharma. “Over the last 18 months, Livspace’s gross revenue has more than quadrupled and, the company also achieved unit-economics profitability across its previously launched markets,” the company said in a statement.
Livspace’s Co-founder and CEO Anuj Srivastava believes that the support from some the world’s best-known investors in this round will help propel Livspace to its next phase of growth. “Our vision is to reshape the way people design and renovate their homes all over the world,” said Mr. Srivastava. “In an industry that has traditionally struggled with scale, we’ve created a first-of-its-kind, design-to-installation technology platform and a marketplace model that is highly scalable,” he explained. “We are thrilled to have TPG Growth and Goldman Sachs with us in our journey,” he added. “Their understanding of global markets and deep expertise in accelerating growth-stage companies will help us take Livspace to the next stage of its journey.”
“India is a rapidly growing economy, and as its middle class expands, there is a greater appetite among consumers to upgrade and improve their homes,” said Bill McGlashan, Founder and Managing Partner at TPG Growth. “Livspace has emerged as India’stop player in the home interiors and improvement space, and we look forward to working with Anuj and his team to bring this innovative service to more consumers across the country,” he added.
“Livspace is an innovative and fast-growing South Asia B2C Internet company led by an excellent management team,” said Jonathan Vanica, a Managing Director at Goldman Sachs. “We feel the company’s platform approach, which integrates products and services while leveraging technology to provide customized consumer solutions, has allowed it to become a leading brand in the Indian home improvement ecosystem,” he added.
India’s fragmented home interiors and renovation market is expected to top $23 billion by 2022. Globally, the market is worth hundreds of billions of dollars.
