Private equity firms TPG and KKR-backed home interior and renovation company Livspace's revenue expanded 21% in FY24, while cutting its adjusted Ebitda loss by half during the same period.
The company's revenue grew to Rs 1,185 crore from Rs 981 crore while its gross margin improved by nearly 39% to Rs 598.6 crore in FY24 from Rs 431.3 crore in the fiscal before. Its adjusted Ebitda (Ebitda before Esops) came down to Rs 246.7 crore in FY25 from Rs 525.4 crore in the previous year.
Livspace said in a statement that it saw strong growth in the residential segment, especially in the premium and mass premium segments across the country. The growth has been one of the key factors in enabling good growth numbers for the business, it added.
In recent quarters, it has continued to be operating cash flow positive since the third quarter of FY24 and has around $100 million cash in the bank. Livspace also noted that its recent quarter Ebitda losses are trending at 4-5% and on order book, the losses are less than 2-3% with a clear path to profitability by the year-end.
The company weighed in a release that it is en route to profitability and that it is eyeing an India listing over the course of the next 18-24 months. However, for an India listing, the company will have to complete a reverse flipping, meaning it will have to transfer its domicile to India from Singapore.
“Quality of revenue remains a key focus for us at Livspace and 100% of the revenue is directly coming from our end consumers who are homeowners. Our ARR for second quarter of FY25 is Rs 1,500 crore and the business is growing at 8-10% QoQ on a 35-40% YoY growth trajectory,” said Ramakant Sharma, co-founder and chief operating officer of Livspace.
“We are expanding our spectrum of offerings with the inclusion of affordable interiors via Bello, premium interiors via Vinciago in addition to Select & Vesta,” Sharma added.
Livspace, which was founded in 2014 by Ramakant Sharma and Anuj Srivastava, is an omnichannel home interior and renovation platform with operations across Southeast Asia, India and the Middle East.
The company has also forayed into kitchen appliances and home furnishings through its private label. It plans to expand its presence in existing markets over the course of the next 6-12 months.
Livspace currently boasts a network of over 90 stores in metros and non-metros, including Delhi-NCR, Bengaluru, Mumbai, Ahmedabad, Jaipur and Kochi. It also operates over 200 experience centers.
The company last raised a $180 million funding round led by KKR, valuing it at $1.2 billion and helping the startup become a part of the coveted unicorn club comprising privately-held startups with valuations of $1 billion or more.
To date, the company has raised about $450 million in multiple rounds. It counts Bessemer Venture Partners, Venturi Partners, Helion Venture Partners, Jungle Ventures, Peugeot Invest, and Ingka, among others, as its investors.
