Livspace, Asia’s largest omni-channel home interiors and renovation platform, today announced an allocation of US$100 million to strategically invest in and incubate new offerings, D2C private labels, brand extensions and content destinations across its current geographical markets in the home interiors, renovation and related home improvement segments. This capital allocation is in line with Livspace’s strategy to create multiple home interiors and renovation solutions, and D2C offerings which serve homeowners across various segments in its markets across India, South-east Asia and the Middle East and are built on its pioneering home interiors and renovation platform. Thus far, Livspace has deployed part of the allocated capital in acquiring a majority stake in companies such as Qanvast – South-east Asia’s top content destination and mobile platform for home mprovement – which connects homeowners and trusted design professionals. The strategic investment creates a common vision for both companies to transform the home interiors and renovations space while creating exciting new opportunities for design and architecture professionals.
Livspace is looking at investing in content destinations, direct-to-consumer interior brands and D2C private labels which will help the company consolidate the market and create value across the ecosystem which includes homeowners, design industry professionals, brands and vendor partners. The strategic partnerships will create new growth opportunities and synergies given the scale of Livspace’s supply chain, omni-channel distribution channels across markets, and the no. 1 brand position in the industry.
Talking about the investment allocation and strategy, Anuj Srivastava, CEO and Co-founder, Livspace said, “At Livspace, we have been and will always be focused on our goal of creating a sustainable business which is an industry pioneer and built on the values of creating a lasting institution. As we continue to scale across new segments in existing geographies and enter new regional markets, we are looking for successful businesses and like-minded entrepreneurs that help us scale even faster. We are looking at ideas, technologies and world-class entrepreneurial teams that bring in additional functional expertise to drive better outcomes for all our stakeholders. In line with this, we will aggressively and methodically pursue a build-or-buy strategy to create the maximum value for the ecosystem, deliver the best experience to our customers and ecosystem partners in our journey of becoming the go-to place for all things home.”
The strategy will be spearheaded by Ankit Shah, Chief Strategy Officer, Livspace. Further elaborating on the development, Ankit said, “Today’s macro-economic environment combined with Livspace’s operational excellence and balance sheet strength is driving innovation in the company at every level. This has resulted in exploring new pathways – both organic and inorganic – that will drive both efficient scale and path-to-profitability. The capital and resource allocation strategy will help our business scale faster across markets, grow our margin stack further and create strong defensible moats.”
Over the last three years, Livspace has built the industry’s largest, fastest growing and a sustainable business organising the highly fragmented home renovation and decor industry.
The company raised over US$180 million in Series F in a unicorn fundraising round earlier this year, led by KKR. Based in Singapore, Livspace currently has operations in over 45 cities across Southeast Asia, India, and the Middle-east region. While the company is the market leader in Singapore and in India, it also launched operations in Malaysia and KSA in partnership with Ikea and has further plans of scaling in these regions. The strategic joint venture with Al Sulaiman Group has already expanded in Saudi and the brand further plans to commence operations in UAE in the next 12 months. In India and Singapore, Livspace has witnessed over 100% growth in the last six months and 400% over the last two years and is a market leader with close to 70% market share within the organised sector.
