IKEA’s largest franchise partner, Ingka Group, invests in Livspace
IKEA‘s largest franchise partner, Ingka Group, has made a minority investment in homegrown home design and renovation startup, Livspace. The investment is expected to be between $10-15 million, sources said, while Livspace declined to confirm the number.
In September 2019, Livspace raised $70 million led by TPG Growth and Goldman Sachs. Earlier in the day, DealStreetAsia reported that IKEA was set to invest in the Indian company.
Livspace will deploy the cash in developing new home interior solutions and products, market expansion as well as growing its offline footprint.“The investment gives us the opportunity to create one of the best omni channel purchase experiences for homeowners. Also our interior designers and vendors gain from richer design and supply,” said Anuj Srivastava, co-founder and CEO of Livspace.
Livspace uses design, data science technology, and catalogues to create thousands of pictures as options, which can be personalized and help home owners visualize their homes before making an online purchase.
Confirming the investment, Krister Mattsson, head of Ingka Investments, Ingka Group said, “Convenience and personalisation are becoming increasingly important to the future of home furnishing and customers life at home. This minority investment aligns closely with the digital direction of Ingka Group and our core business– IKEA Retail. We we are looking forward to exploring new opportunities together with Livspace.
Livspace’s revenue for the fiscal year 2018 stood at Rs 41 crore on a loss of Rs 95 crore, regulatory filings show. The company’s parent entity is based in Singapore.
Ikea launched its first Indian store in Hyderabad in August last year. It said it has also acquired land in Bengaluru, Mumbai and Gurugram, as well as Surat, Chennai and Ahmedabad to go live in the next couple of years in a phased manner.
Source: ET Tech