Livspace Success Story - How it is Connecting Designers and Buyers?

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Interior design is the art of organizing things and decorating the internal part of a building, home, or living space to give it a natural, healthy, and aesthetic look by ensuring the optimum utilization of the space available.

A house with a well-executed interior decoration is bound to be pleasant to live in, along with being really appealing to all others who happen to drop in there due to one reason or the other. Interior design helps to create a space that is equally pleasing and satisfying to the body and the mind of people, the benefits of which are variegated and proven. However, it is when someone actually decides to decorate the interiors of their house or renovate it to enjoy their dream house that they stumble upon numerous hurdles. One of the biggest problems is to make the inside of their house unique and beautiful without breaking their banks!

Such problems had still been a bother now had there been no Livspace. Yes, the home interior and decoration company has certainly been a relief for the people of India and Singapore, which has resulted in cutting off all the hassles in between them and their dream interiors.

Here's all you need to know about Livspace and How it Works, Livspace News, Founder and History, Logo, Mission, Vision, Business Model, Funding and Investors, Acquisitions, Revenue and Growth, Partnerships, Awards and Recognitions, Competitors, Challenges Faced, Future Plans and more.

Livspace - Company Highlights

Livspace - About and How it Works?
Livspace - Name, Tagline, Logo and its Meaning
Livspace - Founders and Team
Livspace - Startup Story
Livspace - Mission and Vision
Livspace - Business Model and Revenue Model
Livspace - Funding and Investors
Livspace - Acquisitions
Livspace - Revenue and Growth
Livspace - LayOff
Livspace - Partnerships
Livspace - Awards and Recognitions
Livspace - Competitors
Livspace - Challenges Faced
Livspace - Future Plans

Livspace - About and How it Works?

Livspace is a personalized home design and decor marketplace that connects interior designers, vendors, and customers. It allows users to discover and customize designs and styles, place order, and get the requirements delivered, furniture and furnishings installed for their living room, bedroom, dining room, kitchen, and more.

Livspace uses a combination of data science, algorithms, and industrial designs, enabling customers to discover a variety of interior designs for all types of rooms, personalize the design by color, material, and style, and get the exact look for their homes. The company takes care of the design and installation and everything in between to transform the living experience.

Apart from its designing and design consultation services for home interiors, Livspace also presents an assemblage of furniture and home decor products with its Livspace store at livspacestore.com.

Livspace - Name, Tagline, Logo and its Meaning

The logo Livspace uses contains several geometric shapes that can be described as concentric or overlapping each other. The brand focuses on red and purple colors. Livspace has signified designs represented by different patterns in its logo, which is quite justified given the brand belongs to the interior designing industry.

The Livspace Tagline is "Hassle-free dream home interiors for any budget."

Livspace - Founders and Team

In July 2014, Livspace was founded by IIT Kanpur alumnus Anuj Srivastava, who was previously with Google, and Ramakant Sharma, who was previously with Myntra.

"At an early stage, investing in building a culture of autonomy may not seem critical but these things tend to stick as you grow. So, think about culture early," said Srivastava.

Anuj Srivastava

Anuj is an IIT Kanpur graduate, who also has an MBA from the London Business School. Srivastava is currently known as the CEO and Co-founder of Livspace. Before founding Livspace, Anuj has served as a Manager in Pepsico, a Head of Product Marketing and Alliance at Encentuate. He also has over 7 years experience of serving as the Global Head of Product Marketing and growth: Google Commerce & Mobile Payments, Maps/Local, AdSense, after which he founded Livspace.

Ramakant Sharma

Ramakant is the Founder and COO of Livspace. He is also an alumnus of IIT Kanpur and has an MBA from the Indian School of Business. On the professional front, Ramakant Sharma started with Teradata as a Software Engineer. He then moved on to SumTotal Systems and GE Healthcare, where he served as a Software Design Engineer and a Senior Design Engineer. Ketera and Zapak were the next companies where Sharma worked as a Technical Lead and an Engineering Manager respectively. He then served as the VP of Engineering at Myntra. Along with being the co-founder of Livspace, Ramakant is also hailed as the co-founder of Violetbag.com. Sharma also has been an Operating Partner at Jungle Ventures.    

Shagufta Anurag

Shagufta Anurag has been a student of BArch and has completed his degree from BMS College of Engineering. Shagufta eventually went on to found her first company back in April 2001, named Space Matrix. With over 3 companies under her belt, she is a serial entrepreneur, the other two companies being Livspace and Saltmine.

Ranjit Kondeshan has been appointed by Livspace as the Head of Human Resources for the interior business of the company. Kondeshan was a Director of Human Resources at Ola, who joined the mobility company in May 2021. Ranjit left that position to join Livspace, as mentioned by the reports dated July 8, 2022.

The team of designers in Livspace is more than 1500 along with some other key executives of the company and its founders, making it a great team indeed brimming with expertise.

Livspace - Startup Story

Anuj and Ramakant, Livspace founders and college friends, were just like any other homeowner—they simply wanted good interiors. Instead, they got a rather appalling experience. It started with trouble in finding the right professionals. It ended with the realization that even after spending a lot of time and money one could never be sure of a fair price, quality, or even the final result. When they, Anuj Srivastava and Ramakant Sharma, set upon their journeys to design their dream homes, soon they found that the industry is really fragmented, where some factors like discovering the right professionals, managing tasks coordinatedly, and ensuring fair price and quality were some of the prominent pain points that people usually face. This is why they were determined to fix this and extend an experience that would truly be happy for the homeowners. This way they went ahead to build a much-needed bridge for the industry in the form of Livspace, which was founded in 2014 as a complete home interior design and renovation solution that is currently helping thousands of homeowners.

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Livspace - Mission and Vision

Livspace company's mission statement says,

"The home that you always wanted is the home you deserve. Livspace helps you realize that dream with interior design that's beautiful, reliable, and created just for you."

Anuj Srivastava, CEO of Livspace said once, "our vision is to be the largest, most innovative interior design platform."

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Livspace - Business Model and Revenue Model

By connecting vendors and designers to homeowners, the platform is acting as a marketplace for home design. It charges a commission or margin fee for all transactions, which range from INR 1 Lakh to over INR 50 Lakh. Livspace operates as a three-sided marketplace, connecting homeowners with designers and suppliers of home design products and services.

Livspace earns mainly through the sale of its design services and handling fees. The company also makes some income from two other sources - traded goods and software development services.  

Livspace - Funding and Investors

Livspace has raised a total of $431.4 million of funding in over 10 rounds of funding. The latest funding of the company was raised on February 7, 2022, when it raised its $180 million worth of Series F funding round led by KKR, Ingka Ventures, and Jungle Ventures among others. This round enabled the company to reach a unicorn valuation. With over $1.2 billion in valuation, Livspace stands among the prestigious unicorn startups.

Livspace - Acquisitions

Livspace has acquired 4 organizations so far. Its most recent acquisition was Qanvast, which it acquired on December 29, 2021. It previously acquired YoFloor on Sep 10, 2015.

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Livspace - Revenue and Growth

In December 2015, Livspace company introduced its private label of modular kitchens and wardrobes and rolled out services in Bengaluru, New Delhi, and Mumbai. In 2016, Livspace launched its home design automation platform for interior designers and announced its design partner community program. The startup later opened four offline design outlets with virtual reality setups in Bengaluru, Delhi, Gurugram, and Mumbai. In 2018, Livspace announced the expansion of its services to Hyderabad.

Livspace currently serves nine metro areas in India (Bengaluru, Chennai, Hyderabad, Delhi-NCR, Gurugram, Noida, Mumbai, Thane, and Pune) and expanded into APAC with its Singapore market entry in October 2019. The company is currently backed by the likes of TPG Growth, Goldman Sachs, Bessemer Venture Partners, Jungle Ventures, and Helion Venture Partners, the company has raised $191.7 million across equity and debt rounds.

• Livspace company has raised $431.4 mn in funding and joined the unicorn club on February 8, 2022
• Livspace boasts of having 35,000+ homes that are designed by the company
• It has a team of over 1,500 expert designers
• Livspace is currently present in 4+ countries and has expanded to over 32 cities
• Livspace opened the largest Experience Centre (23,000 sqft) in Marathahalli, Bangalore in 2020
• The Anuj & RK-led company opened 11 new Experience Centres in 2020 and 2021

Financials

Livspace has shown impressive growth in operating revenue, surging from Rs 621 crore in FY22 to Rs 1,148 crore in FY23. However, the company also experienced an increase in losses, with losses widening from Rs 696 crore in FY22 to Rs 793 crore in FY23.

Expenses Breakdown

In FY23, Livspace's expenses saw significant increases compared to FY22. Key expenses, such as employee benefits, cost of materials, marketing, brokerage, outsourced manpower, and others, all rose, reflecting the company's strategic investments in various areas of its operations to support growth and expansion.

EBITDA

In FY23, Livspace reported a ROCE (Return on Capital Employed) and EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of -88.63% and -61.62%, respectively. On a unit level, the company incurred an expense of Rs 1.68 to generate one unit of operating revenue during fiscal year FY23.

Livspace - LayOff

Livspace was compelled to take the difficult decision of laying off 450 employees, which constituted 15% of its total workforce, as a response to the adverse effects of the COVID-19-induced lockdowns.
Company has downsized its workforce by approximately 2% as part of efforts to boost profitability by March 2024. This reduction notably impacted its technology and product teams, with 36 employees, including software engineering developers and directors, being let go, representing about 45% of that team as per various news reports in March 2023.

Livspace - Partnerships

Livspace partnered with Brand Capital, the strategic investment arm of The Times Group, and was able to create a strong brand presence. The brand targeted urban consumers focusing on working professionals in top metropolitan cities seeking assured quality and timely delivery of services. The company utilized a good mix of print ads, radio campaigns, and strategically located OOH properties offered by the Times Group, leading to a strong top-of-mind recall. This partnership created a valuable impact to build awareness and establish credibility.

Some of the prominent partnerships are:

• Heseos: Livspace has partnered with Heseos to provide a home automation service, offering customers enhanced control and convenience in managing their living spaces.
• Alsulaiman Group: Livspace has teamed up with Alsulaiman Group to drive its expansion efforts in the Middle East, tapping into new markets and opportunities.
• Zunpulse Smart Home Automation: Through a partnership with Zunpulse, Livspace aims to offer cutting-edge smart home automation solutions, providing customers with modern and efficient living environments.
• Schneider: Livspace and Schneider have joined forces to ensure a seamless and superior experience for both existing and potential customers, combining their expertise to deliver top-notch services.
• IKEA Malaysia: Livspace has partnered with IKEA Malaysia to make interior design services more accessible and affordable, bringing quality design solutions to a broader audience.

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Livspace - Awards and Recognitions

• Livspace was awarded the title of "India’s Most Trusted Brand" by White Page International in 2021
• The home interiors company was conferred ‘India’s most admired home interiors brand’ by White Page International
• Livspace was one of the winners of Red Herring Top 100 Global 2018 awards presented by Red Herring, a technology-business magazine.
• Livspace was on the list of most innovative companies in the world, 2017 by Fast Company, an American technology, business, and design magazine.
• Livspace was hailed as the ‘Innovative Start-up of the Year by Entrepreneur in 2015

Livspace - Competitors

Livspace company's top competitors include:-

• At Home Group
• Pepperfry
• Urban Ladder
• Flipspaces Design Labs
• RentoMojo
• Stokers
• HomeLane
• American Furniture Warehouse

Livspace - Challenges Faced

Livspace, a home interior designing startup, has seen losses soar by nearly five times in the financial year 2016-17, even while the revenues more than doubled. The company registered as Home Interior Design e-commerce Pvt Ltd, saw revenues increase to INR 22.4 crore from INR 9.1 crore the previous year, while losses increased to INR 47.7 crore from INR 9.8 crore in the same period.

Another huge challenge that was imposed on Livspace came with the outbreak of the Covid-19 pandemic. Due to the pandemic, Livspace had to lay off around 450 employees as the company’s operations were severely hampered as its experience centers and last-mile operations were impacted due to the restrictions imposed by the government.

However, the company has recovered well since then and is currently operating in around 13 Indian cities. Furthermore, Livspace has also witnessed a successful expansion abroad, in Singapore, where it is been operating since 2019, and also established its headquarters.

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Livspace - Future Plans

Home interiors and renovation platform Livspace has entered the Singapore market. Through a six-month-long pilot, the startup said that it already has a $15 million gross revenue run rate and is growing at 25% month-on-month.

Livspace has also mentioned that it would invest $30 million to grow its business in Singapore – drive demand, hire talent, build design experience centers, and develop a regional supply chain.

"Over the next 30 months, we aim to build Livspace into a US$500 million business operating across APAC and solve the renovation problem for tens of thousands of homeowners. Singapore marks the first step in our APAC growth and will serve as the headquarters for our global expansion,” said Livspace’s CEO and Co-Founder, Anuj Srivastava.

The unicorn interior design startup is currently planning for global expansion, along with a focus on brand building and mergers and acquisitions. The company founder Srivastava in a recent interview dated February 8, 2022, stated "A significant portion of the funds will go into expanding in newer geographies including the UAE and the Middle East, and further expansion in Singapore and India" while referring to the funds that the company acquired, which led to its unicorn status.      

Conclusion

Livspace is an interior design startup that offers a platform that connects people to designers, services, and products and allows users to buy customized wardrobes, modular kitchens, and other interiors. Determined to never let another homeowner experience the misery, they created Livspace. Launched in 2014 in India, Livspace is now the trusted brand for complete home interior design for thousands of homeowners.

FAQs

Is Livspace an Indian company?

Yes, Livspace is an Indian company, headquartered in Bengaluru, India.  

Who founded Livspace?

In July 2014, Livspace was founded by IIT Kanpur alumnus Anuj Srivastava, who was previously with Google, Ramakant Sharma, who was previously with Myntra, and Shagufta Anurag.

Who is the current CEO of Livspace?

Anuj Srivastava is the CEO of Livspace.

How does Livspace make money?

Livspace charges a commission or margin fee for all transactions, which range from INR 1 Lakh to over INR 50 Lakh.

Why choose Livspace to design your home?

Livspace emphasizes quality over quantity. They do 146+ quality checks that include pre-installation checks, post-installation checks, and furniture quality checks to ensure your interiors last a lifetime.

How much does Livspace cost?

For a three-dimensional (3D) view, the cost can go up to ₹75,000-₹1.5 lakh. Some designers charge per room view as well, which can vary from ₹4,000-6,000 per view.

Which is better HomeLane or Livspace?

HomeLane is highly rated for work-life balance on the other hand Livspace is highly rated for culture.

What is the average cost for interior design?

Interior designers can charge anything between ₹75,000-₹10 lakh depending upon the furniture and design you choose. The cost can be customized as per your requirements. Interior designers have the capability to design your interiors within your budget.