Livspace, India’s largest home interior and renovation platform, on Wednesday said it raised $70 million in Series C funding round led by TPG Growth and Goldman Sachs. The company’s existing investors Jungle Ventures, Bessemer Venture Partners and Helion Ventures, also participated in the round.
This deal also marks the largest Series C round raised by a B2C vertical e-commerce company in India, Livspace said in a statement.
Since its launch in 2015, Livspace has emerged as a strong player in India’s highly fragmented home interiors and renovation market, which is expected to exceed $23 billion by 2022. Over the last 18 months, Livspace’s gross revenue has more than quadrupled and, the company has achieved unit-economics profitability across its previously launched markets, it says.
Livspace says it has the biggest seller community in this industry and attracted applications from 25,000 interior designers and small design studios, 10% of which are now certified partners. Livspace services seven major metro areas where it delivers interiors, including kitchens, wardrobes, furniture, decor and provides all contracting services from flooring and false ceilings to painting. The company claims that it completes a home interior project every two hours.
Livspace intends to utilize the funds raised to expand its operations to six more metro areas by 2019 for a total of 13, while achieving deeper penetration in existing markets. This August, the company launched operations in Hyderabad and is on track to hit over $125-135 million in annualized gross revenue by March 2019.
“In an industry that has traditionally struggled with scale, we have created a first-of-its-kind, design-to-installation technology platform and a marketplace model that is highly scalable. The model can inherently deliver strong unit economics,” said co-founder and chief executive Anuj Srivastava.
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.
“Livspace is a groundbreaking company that is disrupting the fragmented interior-design-and-renovation ecosystem in India. They’ve registered strong growth in a short period of time, and we are confident that their approach has tremendous potential to extend across several markets,” said Akshay Tanna, principal, TPG Growth.
For Goldman Sachs, which has deployed more than $3.4 billion in India since 2006, this transaction highlights its focus on backing business models that address the needs and aspirations of the growing middle class.
“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 home improvement ecosystem,” said Niladri Mukhopadhyay, managing director at Goldman Sachs.
Avendus Capital was the financial advisor to the company for the latest fund raise. Before this round of funding, Livspace had raised a total of $33.6 million from Jungle Venture Partners, Bessemer Venture Partners, Helion Ventures, and UC-RNT.