Livspace raises $70m Series C financing led by TPG Growth and Goldman Sachs

– INDIA, Bengaluru – Livspace today announced that it has closed a $70 million Series C funding round. The round was led by global investment funds TPG Growth and Goldman Sachs, a global investment bank and active investor in India, and included participation from existing investors Jungle Ventures, Bessemer Venture Partners and Helion Ventures. The deal marks the largest Series C round ever raised by a B2C vertical e-commerce company in India.

Launched in 2015 by consumer-Internet industry veterans Anuj Srivastava and Ramakant Sharma, Livspace is one of the fastest-growing, consumer-facing Internet companies in India. In little over three years, Livspace has emerged as the top organized player in India’s fragmented home interiors and renovation market, which is expected to top $23 billion by 2022. Globally, the market is worth hundreds of billions of dollars.

Over the last 18 months, Livspace’s gross revenue has more than quadrupled and, the company also achieved unit-economics profitability across its previously launched markets.

Livspace’s Co-founder and CEO Anuj Srivastava believes that the support from some the world’s best-known investors in this round will help propel Livspace to its next phase of growth. “Our vision is to reshape the way people design and renovate their homes all over the world,” said Mr. Srivastava. “In an industry that has traditionally struggled with scale, we’ve created a first-of-its-kind, design-to-installation technology platform and a marketplace model that is highly scalable,” he explained. “We are thrilled to have TPG Growth and Goldman Sachs with us in our journey,” he added. “Their understanding of global markets and deep expertise in accelerating growth-stage companies will help us take Livspace to the next stage of its journey.”

The company also boasts the region’s biggest seller community in this industry: it attracted applications from 25,000 interior designers and small design studios, 10% of which are now certified partners. Livspace services seven major metro areas in India where it delivers interiors, including kitchens, walk-in closets, furniture, decor and provides all contracting services from flooring and false ceilings to painting. Operating at an unprecedented scale, the company completes a home interior project every two hours.
Livspace will utilize the funds to expand its operations to 6 more Indian metro areas by 2019 for a total of 13, while achieving deeper penetration in existing markets. Livspace began operations in Hyderabad in August and is on track to hit over $125-135 million in annualized gross revenue by March 2019.

To fuel its expansion efforts, the firm plans to grow its offline footprint through Livspace Design Centers, the company’s experiential stores that play a key role in its omnichannel strategy. In addition, the company will continue to invest in the growth of its design partner community, which includes interior designers and small design studios, as well as its vendor community which comprises brands, contractors and service partners. On the product side, new home interior solutions and products, together with new technology innovations, are planned for both homeowners and design partners. They will be delivered through Livspace’s proprietary design-to-installation platform, Canvas.

“India is a rapidly growing economy, and as its middle class expands, there is a greater appetite among consumers to upgrade and improve their homes,” said Bill McGlashan, Founder and Managing Partner at TPG Growth. “Livspace has emerged as India’s top player in the home interiors and improvement space, and we look forward to working with Anuj and his team to bring this innovative service to more consumers across the country,” he added.

“Livspace is an innovative and fast-growing South Asia B2C Internet company led by an excellent management team,” said Jonathan Vanica, a Managing Director at Goldman Sachs. “We feel the company’s platform approach, which integrates products and services while leveraging technology to provide customized consumer solutions, has allowed it to become a leading brand in the Indian home improvement ecosystem,” he added.

About Livspace

Livspace is India’s largest home interior and renovation platform. Founded in 2014, the company launched operations in Bengaluru in January 2015. Its three-sided marketplace brings together homeowners and a curated community of designers and vendors. Homeowners gets access to interiors for all rooms in a home, designed and delivered in a predictable, hassle-free manner. In 2016, the company launched Canvas, the world’s first design-to-installation platform for the interior design industry. Canvas creates unique experiences for homeowners and scales the job of interior designers. Livspace currently serves seven metro areas in India including Bengaluru, Mumbai, Delhi and Hyderabad.

For more information, please visit http://www.livspace.com.

About TPG Growth

TPG Growth is the middle market and growth equity investment platform of TPG, the global alternative asset firm. With approximately $13.2 billion of assets under management, TPG Growth targets investments in a broad range of industries and geographies. TPG Growth has the deep sector knowledge, operational resources, and global experience to drive value creation, and help companies reach their full potential. The firm is backed by the resources of TPG, which has approximately $84 billion of assets under management.

For more information, visit http://www.tpg.com.

About Goldman Sachs

The Goldman Sachs Group, Inc. is a leading global investment banking, securities and investment management firm that provides a wide range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments and individuals. Goldman Sachs has been serving Indian clients since the early 1990s and established an onshore presence in India in December 2006 following a ten-year joint venture. Today, it serves leading corporate and institutional clients through corporate finance (investment banking), equity sales and trading and fixed income securities businesses, as well as providing macro-economic and investment research. Goldman Sachs is also an active investor in India, deploying more than $3.4 billion in capital since 2006.

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