Livspace to invest $25 mn in joint venture with Alsulaiman Group
Real Estate

Livspace to invest $25 mn in joint venture with Alsulaiman Group

Home interior platform Livspace is growing to the Middle East, rising with Saudi Arabia, where it has created a joint venture with the Alsulaiman Group (ASG), a senior firm executive told the media.

Livspace co-founder Ramakant Sharma told the media that the firm will fund $25 million (Rs 187.5 crore) in the joint venture with ASG, the operating partner of Swedish furniture retailer Ikea in the area. ASG receives customer insights and supply-chain solutions to the JV while they bring their product and implementation capabilities. It is anticipating healthy revenue from the home interiors and renovation segments in Saudi Arabia.

The firm's increase over the following one year to year-and-a-half will come from augmentation into new markets overseas, more non-metro and smaller cities within India and by enhancing unit economics.

Within the GCC (Gulf Cooperation Council), they plan to grow to another six to seven cities. It is a $15 billion worth of total addressable market that they are targeting. The firm's present revenue run-rate is approximately $175-180 million, which would likely surge to $300-350 million within the following two years.

The firm presently works in India and Southeast Asian markets like Singapore. They are attempting to make a truly global firm out of India with about 20% of their new sales coming in from markets outside of India.

For the fiscal year ended March 31, 2020, the firm recorded new sales of $225 million. They anticipate fresh sales to be about $650-700 million over the next two years.

Established in 2014 by Sharma and Anuj Srivastava, Livspace claims to be the largest omnichannel home interior and renovation platform today. It has delivered more than 100,000 rooms and is marketing more than 7.5 million items through its platform.

So far, Livspace has raised over $200 million in capital from investors comprising Ingka Ventures (the venture arm of Ikea), TPG Growth and Goldman Sachs. Their India business is operationally profitable, and they are properly backed as of now and thus are not looking at raising further capital.

Image Source

Also read: Home renovation platform Livspace plans $50 mn biz expansion

Home interior platform Livspace is growing to the Middle East, rising with Saudi Arabia, where it has created a joint venture with the Alsulaiman Group (ASG), a senior firm executive told the media. Livspace co-founder Ramakant Sharma told the media that the firm will fund $25 million (Rs 187.5 crore) in the joint venture with ASG, the operating partner of Swedish furniture retailer Ikea in the area. ASG receives customer insights and supply-chain solutions to the JV while they bring their product and implementation capabilities. It is anticipating healthy revenue from the home interiors and renovation segments in Saudi Arabia. The firm's increase over the following one year to year-and-a-half will come from augmentation into new markets overseas, more non-metro and smaller cities within India and by enhancing unit economics. Within the GCC (Gulf Cooperation Council), they plan to grow to another six to seven cities. It is a $15 billion worth of total addressable market that they are targeting. The firm's present revenue run-rate is approximately $175-180 million, which would likely surge to $300-350 million within the following two years. The firm presently works in India and Southeast Asian markets like Singapore. They are attempting to make a truly global firm out of India with about 20% of their new sales coming in from markets outside of India. For the fiscal year ended March 31, 2020, the firm recorded new sales of $225 million. They anticipate fresh sales to be about $650-700 million over the next two years. Established in 2014 by Sharma and Anuj Srivastava, Livspace claims to be the largest omnichannel home interior and renovation platform today. It has delivered more than 100,000 rooms and is marketing more than 7.5 million items through its platform. So far, Livspace has raised over $200 million in capital from investors comprising Ingka Ventures (the venture arm of Ikea), TPG Growth and Goldman Sachs. Their India business is operationally profitable, and they are properly backed as of now and thus are not looking at raising further capital. Image Source Also read: Home renovation platform Livspace plans $50 mn biz expansion

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