Business

IKEA Franchisee Invests In Home Design Startup Livspace

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About Livspace

Livespace was founded in December 2014 by Anuj Srivastava and Ramakant Sharma. It has already acquired 2 companies, DezignUp and Dwll.in, YoFloor, and Klozee, following which it launched the ‘home design automation platform’ in 2016.

It is a platform curated for homeowners and home designers which provides an end-to-end home design solution. Before this, Livspace has raised $ 97.6 Mn from investors such as TPG Growth, Goldman Sachs, Jungle Venture, Bessemer Venture Partners, and Helion Ventures.  Speaking on the investment, Akash Goel, Vice President, Bessemer Venture Partners said, “The Indian end-to-end home design industry is very large but fragmented. It is heartening to see Livspace emerging as the disruptor and innovator in this category. We are impressed with the vision of the founding team and their ability to drive execution and are strongly supportive of their growth plans.”

The funds raised by this round will be used by the company to develop an expand themselves in the metro cities, use new-age technology, create design content, hire a senior level experienced team and build ingenious mobile and designer oriented products. Initially, Livspace had raised over $4.5 Mn in Series A of funding.

IKEA Funding

Bengaluru based, home designer and service provider Livspace has raised an undisclosed amount from IKEA Group Franchise, Ingka Group for a minority stake. The partnership will merge the proficiencies of the two companies combining IKEA’s portfolio with Livespace’s technology platform. The funds will be used by the startup to generate new home interior products solution, expansion of the market.

At Livespace customers pay for home decors like furniture, services, and accessories. The app lets people explore and discover thousands of designs which give them an idea about current trends and fashion in home décor. It also lets them personalize the design by color, by material, style and get the exact look of their choice. Livspace designs allow the interior designers to plan the space in 2D on a floor plan. The plan can be converted into a 3D design instantly. The homeowners can visualize the design and designers can plan the design effectively with a single, free tool on the cloud.

Growth of Livspace

It is estimated that the home décor and décor market is about $30 billion and is expected to grow at over 25% YoY (year over year) which will produce a cohesive industry which is fragmented today. The company claims to register a 400% growth in gross revenue in 2017-18. To make a larger grip, Livspace plans to increase its offline retail footprint through both large and small-format Livspace Design Centres.

Due to the initiatives taken in the favor of startups, by the Government of India, it is evident that India will progress. The great initiative taken by the government has triggered the talent and the young minds of India. India is a hub of startups and an ocean of opportunities and this is the reason that there have been so many investments by the foreign country in the young Indian startups which is a great motivation for them.

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