The furniture behemoth, Ikea’s franchise partner, Ingka Group, has taken up a minority stake in the home design and restoration startup named Livspace. According to ET Tech, the amount invested by the company is around $10 million to 15 million. This is Sweden-based, Ikea’s first investment in an Indian company.
Livspace, based in Bengaluru, will utilise the funding to build brand-new products and interior solutions for homes. It will also look into expanding its offline network which is currently restricted to 9 metropolitan cities – Bengaluru, Hyderabad, Chennai, Gurugram, Delhi, Mumbai, Pune, and Noida.
Last September, Livspace had raised $70 million in a series C funding round led by Goldman Sachs and TPG Growth. Existing investors, Jungle Ventures, Helion Ventures, and Bessemer Venture Partners had also participated in the funding round.
The investment by Ikea in Livspace will benefit both companies in terms of knowledge sharing and offering customers with the best services and products. Livspace can help re-imagine products offered by Ikea and Ikea can back Livspace with its excellent supply chain.
Livspace was founded in the second-half of 2014 by senior executives from Google and Myntra. It functions as a market place for homeowners, designers, and vendors. Homeowners can buy interior designs from the designers, through Livspace. Also, the company creates software to help designers channel their workflow.
In 2016, Livspace launched Canvas, a design-to-installation platform that creates an experience for homeowners and boosts the job of interior designers.
The parent company of Livspace, Singapore-based Livspace Pte, has two subsidiaries in India – Ehomemaker Solutions India and Home Interior Designs E-commerce.
The startup has witnessed significant growth from FY 2017 at Rs.26.9 crore to FY 2018 at Rs.104.5 crore.
Sources: ET Tech and LiveMint