Online home designing startup Livspace has secured $70 Mn in series C funding round. The round was led by US-based private equity company TPG Growth and global investment giant Goldman Sachs. The funding also saw participation by existing investors Jungle Ventures, Bessemer Venture Partners and Helion Ventures.
Following the latest funding round, Livspace’s total funding has now reached to $97.6 Mn. The company will be using the latest funds for expanding its territorial presence from 7 to 19 cities by end of the next year.
Since its launch in 2014, Livspace has come a long way to emerge as one of the most formidable players in the online designing space. The company primarily competes with HomeLane, which raised $3.54 Mn from BCCL’s Brand Capital in June.
Livspace seems to be on a very strong financial footing. The startup claims to have clocked an impressive 400% growth in gross revenue over the last three quarters. Last month, the company claimed that it is well on the track to hit over $125-135 Mn in annualized gross revenue by March 2019.
The Bengaluru based company has been equally forthcoming in investing in different avenues. For instance, the company has been very actively pursuing the acquisition route and has so far acquired four startups – DezignUp, Dwll.In, YoFloor, and Klozee. The company is also aggressively pushing to increase its offline footprint through large as well as small small-format Livspace Design Centers.
Meanwhile, India’s online furnishing industry is expected to grow at CAGR of 8% to reach value of 5.29 Bn by end of 2018. Today the industry is not only marked by the presence of online interior startups, but also e-tailers like Urban Ladder and Pepperfry.
While experts cite internet & smartphone penetration as the main reason, they also claim that change in lifestyle and increase in disposable incomes are also pushing people to try out online designing services.