Livspace is a startup that was founded in 2014 in Bengaluru, India. The company operates an online home interior design and renovation platform that connects homeowners with professional interior designers, carpenters, and furniture and decor brands. The platform offers end-to-end interior design solutions that are customized to the unique needs and preferences of each client, and aims to simplify the home design and renovation process by providing a seamless and hassle-free experience.
Livspace has disrupted the traditional home interior design industry in India, which has historically been fragmented and dominated by unorganized players. By leveraging technology to streamline the design and procurement process, Livspace has created a platform that offers a more efficient and cost-effective solution for homeowners who want to renovate or design their homes. The platform also provides professional designers and carpenters with a new avenue to showcase their work and connect with clients, while giving furniture and decor brands an opportunity to reach a wider audience.
Livspace has received significant funding from leading venture capital firms and strategic investors, including TPG Growth, Goldman Sachs, and IKEA Group. The company has also received several awards and accolades for its innovative business model and disruptive approach to the home interior design industry. As Livspace continues to grow and expand in India and Southeast Asia, it is poised to further disrupt the home interior design industry and bring new levels of innovation and efficiency to the market.
History of Livspace / How did Livspace idea come into existence?
Livspace was founded in December 2014 by Anuj Srivastava, Ramakant Sharma, and Shagufta Anurag. The three co-founders had previously worked together at the global e-commerce platform, eBay, and had experience in building and scaling online businesses.
The idea for Livspace was born out of the founders’ personal experiences with home renovation and design. They observed that the home design industry in India was highly fragmented and dominated by unorganized players, which made the process of renovating or designing a home a time-consuming and frustrating experience for homeowners.
To address these issues, the founders decided to create an online platform that would connect homeowners with professional interior designers, carpenters, and furniture and decor brands, and provide end-to-end interior design solutions that were customized to the unique needs and preferences of each client.
The co-founders initially invested their own savings to launch Livspace, and later received funding from investors such as Helion Ventures, Jungle Ventures, and Bessemer Venture Partners. The company quickly gained traction in the Indian market, and expanded its operations to Southeast Asia in 2019.
Today, Livspace is one of the leading home interior design and renovation platforms in India and Southeast Asia, with a network of over 20,000 designers, carpenters, and furniture and decor brands. The company has received several awards and accolades for its innovative business model and disruptive approach to the home design industry.
How does Livspace work?
Livspace works by providing an end-to-end interior design and renovation solution to homeowners. The platform connects homeowners with a network of professional interior designers, skilled carpenters, and high-quality furniture and decor brands, and offers a seamless and hassle-free experience for designing and renovating a home.
Here is how Livspace works:
- Consultation: The homeowner starts by booking a consultation with Livspace. The consultation can be done online or in person, and is conducted by a Livspace design expert. During the consultation, the design expert assesses the homeowner’s requirements, preferences, and budget, and provides an initial estimate of the cost and time required for the project.
- Design Concept: Once the consultation is complete, the design expert creates a design concept for the homeowner’s space, taking into account the homeowner’s preferences and requirements. The design concept includes 3D designs and floor plans, which allow the homeowner to visualize how the space will look after the renovation is complete.
- Material Selection: After the homeowner approves the design concept, the Livspace team provides a curated selection of high-quality furniture, decor, and building materials for the project. The homeowner can select from a wide range of options, including customized furniture pieces, modular kitchens, and other home decor products.
- Project Management: Once the materials have been selected, Livspace assigns a dedicated project manager to oversee the renovation. The project manager coordinates with the designers, carpenters, and other contractors to ensure that the project is completed on time and within budget.
- Installation: The final step is the installation and finishing of the project. The Livspace team coordinates the installation of the furniture, decor, and other materials, and ensures that the project is completed to the homeowner’s satisfaction.
Livspace’s platform also offers additional services such as post-installation maintenance and support, and a 3-year warranty on all products and services. By providing a seamless and hassle-free experience for designing and renovating a home, Livspace has disrupted the traditional home interior design industry in India and Southeast Asia, and has become a popular choice for homeowners who want to create their dream home.
Business Model of Livspace
The company generates revenue by charging a commission on the furniture and decor products sold on its platform, as well as a service fee for the design and renovation services provided.
Here are some key aspects of Livspace’s business model:
Commission-based model: Livspace has partnerships with over 500 furniture and decor brands, and offers a curated selection of high-quality products on its platform. Livspace earns a commission on the sale of these products, which helps to generate revenue for the company.
Service-based model: In addition to the commission-based revenue model, Livspace also charges a service fee for the design and renovation services provided to homeowners. This fee is based on the scope of the project, and covers the cost of the design concept, project management, installation, and other services provided.
E-commerce platform: Livspace’s platform serves as an e-commerce marketplace for furniture and decor products, and provides a one-stop-shop for homeowners to browse and purchase products for their home renovation or interior design projects.
Network of professionals: Livspace has a network of over 20,000 designers, carpenters, and other contractors who work with the company to provide end-to-end interior design solutions to homeowners. The company ensures that these professionals meet its quality standards and are trained in using Livspace’s design tools and processes.
By providing a one-stop-shop for homeowners to design, renovate, and furnish their homes, Livspace has disrupted the traditional home interior design industry in India and Southeast Asia, and has become a popular choice for homeowners who want to create their dream home.
Growth and Revenue of Livspace
Livspace has grown significantly over the years since its founding in 2014. Here are some key growth indicators for the company:
Userbase: Livspace has served over 100,000 homeowners across India and Southeast Asia, and has a network of over 20,000 designers, carpenters, and other contractors who work with the company to provide end-to-end interior design solutions.
Funding: Livspace has raised over $500 million in funding from prominent investors such as TPG Growth, Goldman Sachs, and IKEA Group. The company has also acquired other startups in the home design space, such as DezignUp and Dwll.in, to expand its offerings and capabilities.
Revenue: Livspace has reported significant revenue growth over the years, with revenues growing by over 400% from 2018 to 2020. Livspace’s revenue from operations grew 54.9% to Rs 570 crore in FY22 from Rs 368 crore in FY21. The company expects to continue this growth trajectory in the coming years, as it expands its offerings and presence in new markets.
Awards and Recognition: Livspace has received numerous awards and recognition for its innovative business model and disruptive approach to the home interior design industry. The company has been named as one of the most innovative companies in India by Fast Company, and has won several awards for its design and customer service, including the Red Dot Design Award and the Stevie Awards.
Overall, Livspace has shown impressive growth over the years, and has become a leading player in the home interior design industry in India and Southeast Asia. With a strong focus on technology, design, and customer service, the company is well-positioned for continued growth and success in the years to come.
Also Read: CarDekho – Founders, Business Model, Revenue, Growth & Future
Funding and Investors of Livspace
Livspace has raised a total of over $500 million in funding over 12 rounds. Here is a breakdown of its funding rounds:
Seed Round: In December 2014, Livspace raised $4.6 million in its seed funding round from Helion Venture Partners, Jungle Ventures, and Bessemer Venture Partners.
Series A: In September 2015, Livspace raised $8 million in its Series A funding round led by Helion Venture Partners, with participation from Bessemer Venture Partners and Jungle Ventures.
Series B: In July 2016, Livspace raised $15 million in its Series B funding round led by Bessemer Venture Partners and Jungle Ventures, with participation from Helion Venture Partners.
Series C: In September 2019, Livspace raised $70 million in its Series C funding round led by TPG Growth and Goldman Sachs, with participation from existing investors Jungle Ventures, Bessemer Venture Partners, and Helion Venture Partners.
Series D: In December 2020, Livspace raised $90 million in its Series D funding round led by Kharis Capital, a Switzerland-based investment firm , and Venturi Partners, an investment platform targeting growth investments in the consumer space in India and South-East Asia. The Series D round also included participation from new investors including FFP, Peugeot Group’s holding company and EDBI. Existing investors Ingka Investments, TPG Growth, Goldman Sachs, UC-RNT and Bessemer Ventures also participated.
Series F: In February 2022, Livspace raised $180 million in its Series F funding round led by KKR, with participation from existing investors Jungle Ventures, IKEA Group, Venturi Partners at valuation of $1 billion.
Debt Financing: In July 2019, Livspace raised $10 million in debt financing from Trifecta Capital.
Bridge Round: In April 2020, Livspace raised $3 million in a bridge round of funding from existing investors.
Venture Round: In December 2020, Livspace raised $90 million in a venture round of funding led by Kharis Capital, with participation from existing investors TPG Growth, Goldman Sachs, and Jungle Ventures.
These funding rounds have helped Livspace to expand its operations and offerings, and have enabled the company to continue growing its user base and revenues.
Future of Livspace
The future of Livspace looks bright, as the company is well-positioned to capitalize on the growing demand for home interior design solutions in India and Southeast Asia. Here are some key factors that are likely to shape the company’s future:
Continued Growth: Livspace is expected to continue growing its user base and revenues in the coming years, as it expands into new markets and enhances its offerings. The company has already established a strong presence in India and Southeast Asia, and is well-positioned to tap into the growing demand for home interior design solutions in these regions.
Technology Innovation: Livspace has a strong focus on technology, and is constantly developing new tools and solutions to enhance the interior design process for its users. The company is likely to continue investing in technology innovation, which will help it to stay ahead of the curve and differentiate itself from competitors.
Partnerships and Acquisitions: Livspace has already acquired several startups in the home interior design space, and is likely to continue pursuing strategic partnerships and acquisitions in the coming years. These partnerships and acquisitions will help the company to expand its offerings and capabilities, and to enter new markets more quickly and effectively.
Sustainable Design: Livspace is committed to promoting sustainable design practices, and is likely to continue emphasizing sustainability in its offerings and operations. This focus on sustainability is likely to become increasingly important in the coming years, as consumers become more conscious of the environmental impact of their purchasing decisions.
Overall, the future of Livspace looks bright, as the company continues to grow and innovate in the home interior design space. With a strong focus on technology, sustainability, and user experience, Livspace is well-positioned to capitalize on the growing demand for home interior design solutions in India and Southeast Asia.
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