Livspace, an Ikea-backed home decor start-up, plans to shift its domicile from Singapore to India, supported by recent Indian government policy changes. The company aims for an IPO in late 2025 or early 2026. Livspace is on a INR 1,500 crore revenue run-rate for FY25 and expects to achieve positive EBITDA by March 2025. It plans to expand its store count to 200 by March, focusing on non-metro markets. Livspace is also exploring consumer brand acquisitions in home furnishings and appliances. The start-up became a unicorn in 2022, following a USD 180 million funding round at over USD 1 billion valuation.
Livspace, the Ikea-backed home decor start-up, is preparing to shift its domicile from Singapore to India, a move crucial for its planned initial public offering (IPO) by late 2025 or early 2026. Co-founder and Chief Operating Officer Ramakant Sharma revealed that the board has given in-principle approval for the relocation, which will be one of the first under India's new regulatory framework. This shift has been facilitated by the Indian government's recent removal of the requirement for National Company Law Tribunal (NCLT) approval, significantly reducing the timeline for companies seeking to relocate their holding entities to India.
Sharma emphasised that Livspace is committed to going public within the next 18 to 24 months. The company, which is currently experiencing annual growth of 35-40% while approaching profitability at scale, plans to use the IPO to further its expansion. Livspace is expected to be EBITDA positive by March 2025, having already improved its financials from (9%) EBITDA in FY24 to (4%) in August, with plans to turn profitable by the end of FY25.
Livspace is on a revenue run-rate of INR 1,500 crore for FY25, up from INR 1,200 crore in FY24. There was a slight increase in revenue from INR 1,147 crore in revenue for FY23. However, it reported a net loss of INR 246 crore for FY24. Despite these losses, Sharma is optimistic, especially with plans to expand the company's offline presence in India. Livspace intends to double its number of stores to 200 by March, with a focus on non-metro markets like Patna, Varanasi, Kanpur, Jammu and Kashmir, and Guwahati, which have shown strong performance. The company is adding five to six stores per month.
In addition to organic growth, Livspace is eyeing acquisitions to strengthen its portfolio, particularly in consumer brands related to home appliances and furnishings, areas outside its core expertise. The company has already initiated talks with bankers to identify potential targets for acquisition. Livspace has exited its low-margin business-to-business deals, such as those with commercial offices, to focus on high-margin consumer offerings. Its services range from INR 1 lakh to INR 1 crore through brands like Bello, Select, Vesta, and Vinciago, catering to various budget segments. Livspace became a unicorn in 2022, following a USD 180 million funding round that valued the company at over USD 1 billion.
Livspace's strategic move to shift its domicile from Singapore to India marks a significant step towards its planned IPO, facilitated by favourable regulatory changes. With robust growth and profitability on the horizon, the company is poised for expansion, both organically and through acquisitions, while focusing on high-margin consumer offerings. This relocation and the impending IPO underscore Livspace's commitment to strengthening its market position and capitalising on India's burgeoning home decor sector.
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