Online home decor unicorn Livspace will foray into commercial interior design space with the launch of its new offering, Livspace For Business.
The business-to-business (B2B) offering will operate in categories across spaces such as offices, retail, hospitality, warehousing among others and help brands experience, personalize, and purchase commercial solutions. It will provide one-stop, tech-enabled, transparent design solutions to the clients.
“Considering our experience in the home interiors and renovation segment, commercial space is a natural progression,” Saurabh Jain, co-founder & chief executive, Livspace India told VCCircle in an email response.
Livspace has run a few pilots for the offering, completing projects with companies such as WeWork, Decathlon, Toothsi, McDonald's, Domino's amongst others. It has a deal pipeline of close to $10 million for the next six months for the offering.
The startup is backed by investors such as KKR, Venturi Partners and Jungle Ventures amongst others. Earlier this year, the startup raised a $180 million funding round led by KKR. The round pegged its valuation at $1.2 billion. In all, Livspace has raised around $450 million from investors.
Livspace is also betting on the growing commercial real estate market.
“As offices open across the country, we have been witnessing growth in the commercial/B2B sector,” said Sudarshan Choudhary, head, Livspace B2B, India.
With rising demand for flexible, intuitive spaces, we believe Livspace for Business is poised to deliver the next generation of commercial spaces. We are looking at building a business model which will reach an ARR of $100 million over the next 24-36 months,” added Choudhary.
For now, the priority is to grow and establish this service in India and build operational presence across more than 40 cities, where the firm is already present.
“Based on the response, we plan to add the commercial services in our global operations in the next two years,” the founders said.
Livspace was founded in 2014 by Ramakant Sharma and Anuj Srivastava. It claims to have delivered more than 125,000 rooms and is selling over 7.5 million items through its platform. It also has presence in Singapore, Malaysia & Saudi Arabia.
Recently, the company had allocated $100 million to create its own ‘house of brands’, as a part of which it said it will invest in and incubate brands and content destinations across markets in the home decor, interior, renovation and ancillary segments.
The company claims to be profitable in India, witnessing over 100% growth in the last six months and 400% over the last two years. In FY21, it had reported a revenue of Rs 320 crore and a loss of Rs 255 crore.