Personalized home furnishings provider Livspace has raised Rs 100 crore (~$14.8 million) in a round of funding led by existing investor Bessemer Ventures Partners, with participation from Jungle Ventures and Helion. The company plans to use fresh funds to expand operations across Noida, Gurgaon, Mumbai in 2016 and Pune, Hyderabad in 2017. The funds will also be used to set up Livspace design studios with VR integration, expansion of its design automation platform, strengthen product catalog, and further upgrading its back-end technology.
Livspace focuses on furnishings for living rooms, bedrooms and dining rooms, and lists furnitures like sofas, tables, beds, wardrobes, storage furniture and dining tables among others. Users can also browse through a catalogue of pre-designed setting or pattern for living, dining and bedrooms that feature fully furnished rooms designed by various designers with a specific price tag. The company also claims to have tie-ups with large real-estate developers to offer pre-created interior designs including ready-to-install furnishings to customers who buy apartments from these developers.
On purchase, goods are delivered in a few weeks, with the company taking care of the last mile installation. Livspace also lets users hire a designer for consultation. As of now, it operates in cities like Bangalore, Delhi, Mumbai, Chennai and Hyderabad.
Livspace had raised $8 million in a round of funding from existing Helion Venture Partners, Jungle Ventures and Bessemer Ventures and angel investors including Gokul Rajaram in August last year. The funding went into to hiring, upgrading to new design content and expansion to newer cities in India. It also raised $4.6 million in a series A round of funding led by Helion Venture Partners and other investors in 204 primarily to expand product catalogue and technology.
Four months after the Series A round, Livspace acquired the design community and marketplace for consumers and design professionals, DezignUp, for an undisclosed amount. At the time, the company said this acquisition would help scale its business faster and offer more design choice to homeowners. Post acquisition, the co-founders of DezignUp and its core team joined the Livspace team.
A month later in May, the company acquired a curated online network of interior designers Dwll.in. This was essentially a talent acquisition, with the co-founders of Dwll and its core team joining Livspace. As of now, Dwll continues to run as an independent website and offers furniture designs from designers across various cities. The platform also offers a service where users are matched up with relevant designers for redesigning projects.
Livspace primarily depends on designers and a fully-integrated design catalogue of products; there aren’t many who operate this way. However its immediate competition is furniture and home decor marketplace Pepperfry which raised $100 million in a third round of funding in July 2015. At the time of funding, Pepperfry claimed to have over 80,000 items in furniture, home decor and kitchen and dining among others. It also claims to have over 1,000 merchant partners, with delivery across 250 cities and towns.
Another important competitor to Livspace is Bangalore-based online furniture store Urban Ladder that offers home decor products across various furniture categories like beds, sofas, coffee tables, side tables, dining tables, etc. It had raised $50 million in a series C round in April 2015. At time of funding it delivered to 12 cities, and aimed to be present in 30 cities by the end of 2015.
German startup incubator Rocket Internet, which operates online marketplace for furniture, and décor FabFurnish in India, had closed a $500 million investment from existing investors in July 2013. Post investment, it was looking to launch e-commerce companies in the fashion, general merchandise and furniture sectors in countries like India, Europe, Africa and others.