Exclusive: Livspace Parent Infuses INR 362 Cr Into Indian Arm

SUMMARY

With this latest tranche, the total capital infusion by the parent into the Indian subsidiary stands at around INR 789 Cr this year

“This funding, along with the previous infusion, is part of Livspace’s plan to shift its base to India as it gears up for an IPO,” a source told Inc42

Livspace cofounder Ramakant Sharma last year conveyed that the company was targeting an IPO by late 2025 or early 2026

Home decor startup Livspace has bagged INR 362 Cr (around $42 Mn) from its Singapore-based parent Livspace Pte Ltd as it seeks to shift its domicile back to India, sources close to the matter told Inc42.

As per the company’s MCA filings accessed by Inc42, Livspace Pte Ltd’s board issued 1.57 Cr equity shares on a rights issue basis to infuse the capital into its Indian subsidiary.

Notably, this follows Inc42’s earlier report that Livspace’s holding entity had injected INR 427 Cr via another rights issue. With this latest tranche, the total capital infusion by the parent into the Indian subsidiary stands at around INR 789 Cr this year.

“This funding, along with the previous infusion, is part of Livspace’s plan to shift its base to India as it gears up for an IPO,” a source told Inc42, adding that the company is still awaiting final approval from the RBI to complete the reverse flip process.

Last year, Livspace cofounder Ramakant Sharma told ET that the company was targeting an IPO by late 2025 or early 2026 and had secured in-principle board approval for its India return.

However, the source noted that the exact timeline for its listing on Indian bourses remains unclear. Queries sent to Livspace did not elicit a response until the time of publishing.

In September 2024, the Centre scrapped the requirement for NCLT clearance to simplify the reverse flip process for overseas-headquartered startups, enabling faster transitions for companies like Livspace.

Earlier this year, Livspace underwent a leadership rejig when its COO Ramakant Sharma was elevated to the role of CEO while cofounder and CEO Anuj Srivastava transitioned to chairman of the board.

Inside Livspace: The Business Behind The Brand

Founded in 2014 by Ramakant Sharma and Anuj Srivastava, Livspace is an omnichannel home interiors and renovation platform connecting homeowners with professional interior designers, contractors, and vendors for design, renovation, and furnishing solutions.

The company operates a multi-faceted business model, combining marketplace, e-commerce, and service-based revenue streams. Its income sources include service fees for project execution and management (covering design consultation, project planning, and more), commissions from sales of furniture and décor items via its aggregator platform, and revenue from private-label and value-added products.

Livspace counts KKR, Ingka Group Investments (IKEA’s parent), TPG Growth, Goldman Sachs, Bessemer Venture Partners and Jungle Ventures, among its marquee investors.

The company competes with startups such as HomeLane and DesignCafe. With an IPO on the horizon, Livspace is moving closer to profitability. Its losses dropped 45.75% to INR 413.8 Cr in FY24 from INR 762.8 Cr in FY23, while its total income increased to INR 1,234 Cr in FY24 from INR 1,005 Cr in FY23.

Most of Livspace’s income comes from its interior projects business, which contributed 94% of its total revenue. This segment grew 22.7% to INR 1,110.65 Cr in FY24 from INR 905.35 Cr in FY23.

Besides, the company earned INR 69 Cr from selling products and providing allied contractual services in FY24. It also added INR 48.4 Cr in income, mainly from interest on fixed deposits.