Home decor unicorn Livspace forays into the business-to-business segment

The business-to-business (B2B) offering will work across categories including offices, retail, hospitality, warehousing, among others, and help brands buy experiences, personalization and business solutions. It will provide one-stop, tech-enabled, transparent design solutions to customers.

“Considering our experience in the home interior and renovation segment, commercial space is a natural progression,” Saurabh Jain, Co-founder and CEO, Livspace India, told VC Circle in an email response.

Livspace has run a few pilots for the offering, completed projects with companies such as WeWork, Decathlon, Toothsee, McDonald’s, Domino’s. It has a deal pipeline of around $10 million for the next six months to offer.

The startup is backed by investors such as KKR, Venturi Partners and Jungle Ventures. Earlier this year, the startup raised a $180 million funding round led by KKR at a valuation of $1.2 billion. In total, Livspace has raised close to $450 million from investors.

Livspace is also betting on the growing commercial real estate market.

Sudarshan Chowdhary, Head, Livspace B2B, India, said, “With the opening of offices across the country, we are witnessing a significant growth in the commercial/B2B segment.

With the growing demand for flexible, seamless spaces, we believe Livspace for Business is poised to deliver the next generation of commercial spaces. We are looking at building a business model that will reach an ARR of $100 million in the next 24-36 months.”

For now, the priority is to scale up and establish the service in India and build an operational presence in over 40 cities where the firm is already present.

“Based on the response, we plan to add commercial services to 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 over 125,000 rooms and is selling over 7.5 million items through its platform. It also has a presence in Singapore, Malaysia and Saudi Arabia.

Recently, the company had allocated $100 million to build its ‘House of Brands’, as part of which it said it would invest in brands and content destinations across home decor, interiors, renovation and accessories segments.

The company claims to be profitable in India with a growth of over 100% in the last six months and 400% in the last two years. In FY21, it had reported revenue of 320 crores more loss 255 crores.