the company will Investment $25 million (Rs 187.5 crore) in a joint venture with ASG, the Swedish furniture retailer’s operating partner Ikea In area.
“As we bring together our product and execution capabilities, ASG gets customer insights and supply-chain solutions for JVs,” Ramakant Sharma, co-founder, Livspace told ET. It’s expecting healthy revenue from home interior decoration And renewal section in Saudi Arabia.
Where will the growth of the company come from in the next one year and a half? Expansion In new markets overseas, more non-metro and smaller cities within India and by improving unit economics, said Sharma, who is also its chief operating officer.
“Within the GCC (Gulf Cooperation Council), we intend to expand to another six to seven cities. This is worth $15 billion of the total addressable market that we are pursuing,” Sharma said.
According to Sharma, the company’s current revenue run rate is around $175-180 million, which is expected to increase to $300-350 million in the next two years.
The company currently operates in Southeast Asian markets such as India and Singapore.
“We are trying to be a truly global company based out of India, with about 20% of our new sales coming from markets outside India,” Sharma said.
For the fiscal year ended March 31, 2020, the company posted new sales of $225 million. “We expect new sales to be around $650-700 million in the next 24 months,” Sharma said.
Founded in 2014 by Sharma and Anuj Srivastava, Livspace today claims to be the largest omni-channel home interior and renovation platform. It has distributed over 100,000 rooms and is selling over 7.5 million items through its platform.
To date, LivSpace has raised more than $200 million in capital from investors including Ingeka Ventures (the venture arm of Ikea), TPG Growth and Goldman Sachs.
“Our India business is operationally profitable and we are currently funded properly and therefore are not looking to raise further capital,” Sharma said.
With its technology, Livspace brings together homeowners, design professionals, vendors and brands on a single platform.
The joint venture in Saudi plans to invest in top talent at all levels, aiming to reach 500 design and execution partners in the region by 2022.
“Given our ready launch and scale template, we are today the market leader in India and Singapore. Our platform allows us to explore JV models to rapidly expand our services in both new and existing markets,” said Srivastava, who is also its chief executive.
Livspace provides home design, interior design execution, renovation services, material supply and fit-out elements. It is also focusing on mobile applications, artificial intelligence, machine learning and visualization solutions for the home improvement industry.
“This partnership with LivSpace will allow us to expand the scope of the customer experience from the beginning of home design to the end of implementation,” said ASG CEO Saud Alsulaiman.
In India, Livspace currently serves 13 metro and non-metro areas: Bengaluru, Delhi, Noida, Gurgaon, Mumbai, Thane, Pune, Hyderabad, Ahmedabad, Kolkata, Kochi, Jaipur and Chennai.