Livspace, a home interior and renovation platform, has raised $70 million in Series C funding round led by TPG Growth and Goldman Sachs. The round also saw participation by existing investors Jungle Ventures, Bessemer Venture Partners and Helion Ventures.
About 80% of the funding round, i.e. close to $55 million, was covered by TPG Growth and Goldman Sachs, and the remaining came from the existing investors, according to Ramakant Sharma, co-founder and chief operating officer, Livspace.
The funds raised will go towards omnichannel design, brand building, expansion into cities like Hyderabad, Pune and Chennai as well as expansion of technology, supply chain and designer community development. Livspace was founded by Anuj Srivastava and Ramakant Sharma in July 2014 and operates in cities like Bengaluru, Delhi-NCR, Mumbai, Thane, and Hyderabad. The Bengaluru-headquartered firm, which has over 800 employees, claims to have designed over 5,000 homes.
Prior to this, the company had raised $21 million in Series B funding in August 2016 while it had raised a total of $12.6 million in Series A and extended Series A funding rounds. The latest round takes the total funds raised to $103.6 million.
“We have just started our Hyderabad operations in a small way. We will be building a large design centre. We are now looking to expand into Chennai and Pune as well. We will also be looking to add more design centres in Mumbai,” said Ramakant Sharma. He also indicated that the company is expecting an annual run-rate revenue at $125-135 million by March 2019.
Avendus Capital was the financial advisor to Livspace for this transaction. Avendus claims the deal marks the largest Series C round raised by a vertical e-commerce company in India in the B2C segment.
Karan Sharma, executive director and co-head, digital and technology investment banking at Avendus Capital, said that Livspace is solving a highly complex problem in the unorganised home interiors market with its sophisticated three-side marketplace which brings consumers, designers and suppliers on the same platform and delivers an exceptional service promise.
“With their growth momentum and induction of strong investor partners, they are well positioned to capture several markets,” he said.
Livspace had done a string of acquisitions in 2015. In March 2015, it acquired DezignUp, a design community and market-place for designers. In May 2015, Livspace acquired Dwll.in, an online network of interior designers. Later in September 2015, the firm acquired YoFloor, a mobile platform for home design.