Bengaluru-based online home décor startup Livspace has raised an undisclosed amount from Ingka Investments, the investment arm of the Ingka Group which owns and operates Swedish furniture giant IKEA.
Livspace said in a statement that it will deploy the capital for developing new home interior solutions and products, market expansion as well as growing its offline footprint. The value of the transaction was not disclosed.
“On the one hand, the investment gives us the opportunity to create one of the best omnichannel interiors and furniture purchase experience for homeowners. On the other hand, interior designers and vendors can anticipate a richer design and supply experience,” said Anuj Srivastava, co-founder and chief executive officer of Livspace.
The company was founded in 2012 by former Google and Myntra executives Srivastava and Ramakant Sharma. It helps homeowners discover pre-created looks for rooms, kitchens and storage areas. Customers can select and purchase these looks, and personalise them for delivery on the basis of material, colour, style and so on. Users can also get tailor-made designs by visiting Livspace’s offline showrooms.
IKEA, which has similar offerings, is renowned for its do-it-yourself” (DIY) assembly model. It opened its first store in India last year -- a 400,000 sq. ft facility in Hyderabad. The investment in Livspace comes at a time when IKEA has been pushing into new countries in South America and Asia as growth slows in its traditional strongholds, including Europe. It is betting on India with its growing middle class. IKEA operates more than 350 stores across 38 countries.
Livspace is one of the best-funded startups in the online home décor space. Its main competitors include Pepperfry and Urban Ladder.
Livspace has raised more than $100 million in external funding till date from investors such as Goldman Sachs Investment Partners, TPG Growth, Bessemer Venture Partners, Helion Venture Partners, Jungle Ventures, Trifecta Capital, and Brand Capital, among others.
Operated by Home Interior Designs E-Commerce Pvt. Ltd, the startup raised Rs 500 crore (around $70 million then) last September in its Series C round of funding from TPG Growth, Goldman Sachs and other investors.
Three months ago, the company appointed former Flipkart executive Kartikeya Bhandari as its chief marketing officer.
Deals in the segment
March 2019: Interior home design company Bonito Designs Pvt. Ltd raised $6.3 million from early-stage strategic investment fund Tomorrow Capital.
February 2019: Interior design solutions marketplace HomeLane raised Rs 33 crore ($4.6 million) in a bridge round from JSW Ventures, Accel and Sequoia Capital.
September 2018: Bengaluru-based omnichannel furniture retailer Urban Ladder pocketed $5.06 million (Rs 36.29 crore) in a fresh funding round from venture debt firm Trifecta Capital.
March 2018: Mumbai-headquartered TrendSutra Platform Services Pvt. Ltd, which runs furniture e-tailer Pepperfry, secured Rs 250 crore ($38.4 million) from asset management company State Street Global Advisors.