Bengaluru-based Livspace on Wednesday announced its expansion in the international markets by launching its home design and renovation platform in Singapore, and said it will invest USD 30 million (around Rs 213 crore) to grow its business.
The company, which aims to clock a revenue run rate of USD 500 million by April 2022, expects international operations to account for 25 per cent of its revenues by that timeframe.
“Over the next 30 months, we aim to build Livspace into a USD 500 million business (revenue run rate) operating across Asia Pacific and solve the renovation problem for tens of thousands of homeowners. Singapore marks the first step in our APAC growth and will serve as the headquarters for our global expansion,” Livspace CEO and co-founder Anuj Srivastava told PTI.
He added that during the six months of soft launch in Singapore, Livspace is already operating at USD 15 million gross revenue run rate and has seen 25 per cent month-on-month growth.
The company has appointed Ravindran Shanmugam (ex-McKinsey and Grab) as country head for Singapore operations.
“We plan to base over 250 employees in Singapore, including central platform teams. Over the next two years, we aim to onboard thousands of freelance designers, contract manufacturers, OEMs and brands to build the best e-commerce supply chain for the home improvement industry,” Srivastava said.
Livspace will also invest in creating an omni-channel experience using augmented or virtual reality and platform-integrated physical design experience centres.
The company plans to invest USD 30 million to grow business in Singapore, and the funds will be utilised to drive demand, hire talent, build design experience centres and develop a regional supply chain.
“Singapore is a highly attractive market for Livspace – a USD 5 billion home-design industry that is growing at 10 per cent year-on-year, and we aim to capitalise on the market potential in Singapore with a targeted revenue of USD 5 million by end of financial year 2020,” he explained.
Revenue run rate is a term used in online retailing to indicate total sales value of merchandise sold through the marketplace over a certain period of time.
“In India, our revenues and growth has seen a positive trajectory. We are currently at a GMV run rate of USD 160-plus million in India with growth expectancy of USD 220 million by March 2020,” he said.
Founded in 2015 by Ramakant Sharma and Anuj Srivastava, Livspace provides a three-sided marketplace and a design automation platform that connects homeowners, certified designers, and vendors.
Livspace uses data science-enabled algorithms to match homeowners with designers (based on style preferences, budget, scope of work and timelines).
In India, Livspace currently serves nine metro areas in India and has a network of 20 design centres and experience apartments across the country. The company works with 3,500 registered designers and has designed 20,000 homes. PTI SR