Livspace, the home decor startup backed by US private equity firms TPG and KKR, reported an 85 per cent y-o-y revenue increase, reaching close to ₹1,100 crore on Friday. The company aims to be cash flow positive by the end of FY24.
The unicorn, operating an omnichannel home renovation platform, attributes its growth to several key factors. Additionally, it achieved a gross margin of 40 per cent, with a projection to trend toward 51 per cent by the end of FY24, indicating a path to profitability, the company said in a press release.
Livspace’s Chief Strategy Officer, Ankit Shah, said, “We’ve achieved an 85 per cent top-line growth across the business, with our revenue reaching nearly ₹1,100 crore. Business expansion, investments in branding and experience centres, and supply chain enhancements have played pivotal roles in our high growth this fiscal year.”
The start-up has reduced its EBITDA loss, particularly in its India business, which constitutes around 80 per cent of its scale. It reported an EBITDA loss before employee stock options (ESOPs) of S$ 95.36 million, down from S$ 96.86 million (2022), while its ESOPs before improved to -50.7 per cent (2023 ) from -95.2 per cent in the previous fiscal year.
Strong presence
The company also said that it solidified its position in the organised market segment through branding investments and the expansion of its Experience Center (EC) network across various regional markets.
It claims to have established a strong presence in both mass-market and premium segments, with strategic branding investments, including partnerships with notable figures including Virat Kohli and Anushka Sharma during the IPL, propelling it to become the top brand in India.
Going forward, the unicorn anticipates capitalising on the real estate sales cycle and intends to expand into more customer segments, with plans to be present in over 100 cities across Asia . Additionally, it also aims to double the scale of its ECs, and explore potential mergers and acquisitions to expedite its growth and bolster its market position.
Its gross margin improved by 142 per cent, growing from S$31 million to S$75 million.
Livspace has raised around $450 million in capital from global investors including KKR, Ingka Group Investments (part of largest IKEA retailer Ingka Group), TPG Growth, Goldman Sachs, Kharis Capital, Venturi Partners, FFP (Peugeot Group’s Holding Company), EDBI, Bessemer Venture Partners, Jungle Ventures, Helion Ventures and UC-RNT.