NEW DELHI, Sept 5: Home interiors and renovation platform Livspace aims to log USD 350 million (around Rs 2,555 crore) in annual revenue run rate in the next two years as it expands its presence across Asia Pacific, Australia and GCC (Gulf Cooperation Council) countries.
The Bengaluru-based firm, which has raised USD 200 million from Swiss investment firm Kharis Capital, Bessemer Ventures and others, is also looking at achieving the break-even in the next 15 months.
“Despite the continuing disruptions, Livspace has succeeded in bringing together a highly fragmented home interiors market in India. Through a robust marketplace based model, we have created a strong value-based business helping homeowners, vendors and designers alike,” Livspace co-founder and COO Ramakant Sharma told PTI.
He added that the India operations achieved break-even in March this year, and the company aims to break-even across business in the next 15 months.
“We are also setting out to achieve a USD 350 million annual revenue run rate in the next two years,” he stated.
Sharma explained that through its three-sided marketplace-based approach, the company has created a strong value chain helping homeowners, vendors and designers.
“We closed FY20-21 with a USD 90 million in revenue run rate. We have recovered and expect to grow 2x by FY22. Till date, we have designed over one lakh rooms and sold over 7.5 million SKUs…We are looking at 1,200-1,300 bookings a month, as we move ahead,” he said.
Sharma pointed out that Livspace is aggressively scaling up its business in India, while also strategically expanding its presence across Asia Pacific.
The company had launched operations in Singapore in 2019, which is growing at 10 per cent per month and contributing to about 20 per cent of the overall business.
“Considering it is one of the global financial hubs with a dynamic business environment, we will continue to focus on Singapore to introduce our technology innovations. With Singapore as our headquarters for global expansion, we are exploring new markets in Asia Pacific, GCC and Australia in 2022,” Sharma said.
Within the India market, Sharma said there is a huge opportunity outside of metros that the company has tapped into. “In the past 8-10 months, we have successfully expanded into a lot of tier II markets and have witnessed a phenomenal response in the initial months and we plan to continue and build on that momentum,” he said.
He noted that as more and more people seek home interior solutions, Livspace is expanding its offline offerings across various Indian cities.
“Our offline stores have received a phenomenal response in every market we have forayed into and this gives us utmost optimism. Experience Centres (ECs) and small format stores have emerged as key consumer touchpoints, helping Livspace solve for access in the non-metros. With gradual unlocking, we aim to further strengthen our presence in the country with over 15 new stores,” he said.
Livspace recently launched operations in Chennai, Hyderabad, Surat and Indore and the new centres will supplement an existing network of over 13 stores in both metros and non-metros such as Delhi-NCR, Bengaluru, Mumbai, Ahmedabad, Jaipur, Kochi.
Livspace plans to be present in 30 Indian cities, including markets such as Bhubaneswar, Guwahati, Nagpur and Patna in the next 12-18 months.
Talking about the impact of the pandemic, Sharma said Livspace also witnessed initial hiccups like all other businesses across the industry.
“The pandemic has pushed each one of us to think beyond the usual frameworks and cadence we have been accustomed to. That said, internet-first businesses such as ours were agile and moved to recovery swiftly. We are experiencing a structural shift in demand towards organised players and we, being the market leader, will be the biggest beneficiary of this shift,” he said.
As part of ensuring business continuity and in line with the continued relaxation guidelines by various state governments, the company is opening up its experience centres across regions in a phased manner.
While the ECs are fully operational in Delhi-NCR and Hyderabad, centres in Bengaluru, Pune, Ahmedabad, Mumbai, Kochi, Chennai and Kolkata are open for a limited time as per respective state governments’ directives.
“To ensure customer safety, we have put together stringent guidelines in place. Every EC has vaccinated staff. We are proud to share that over 85 per cent of our employees are now vaccinated (with at least one dose). Currently all our customer facing workforce are 100 per cent vaccinated,” the executive said.
Aligned with this and its expansion plans, the company is also hiring across levels to drive future growth, he added.
Asked if the company was exploring public listing like many other consumer Internet companies, Sharma answered in the negative.
“Right now, we have a clear focus on achieving break-even and then profitability. Over the next couple of years, we will focus on not only achieving consistent profitability but also leverage growth opportunities. There are no firm plans for an IPO,” he said. (PTI)
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