Livspace, the home renovation and interiors platform currently based in Singapore, is reportedly planning a return to India within the next 9-12 months. The unicorn is not only eyeing its comeback to India but is also setting ambitious goals, including a public listing in the country by 2025. Livspace has initiated internal processes towards achieving profitability by the end of the ongoing financial year and is exploring strategic acquisitions to diversify into private labels and niche categories.
Anik Shah, Chief Strategy Officer of Livspace, stated, “Our investments are in line with creating a comprehensive ecosystem in the home interiors and renovation sector and to be closer to our customers while delivering a complete spectrum of services.” In terms of acquisitions, Livspace is actively seeking companies that are significantly value accretive, profitable, have a strong growth trajectory, are well-capitalized, and possess robust management teams.
Founded in 2014 by Anuj Srivastava and Ramakant Sharma, Livspace operates as a curated marketplace offering an end-to-end home design experience. The platform also provides software tools to assist designers and homeowners in their projects. Livspace entered the unicorn club in 2022 after securing $180 million in its Series F funding round led by private equity group KKR, with participation from existing investors like Ingka Group Investments, Jungle Ventures, Venturi Partners, and Peugeot Investments.
The move by Livspace to return to India and consider an IPO aligns with a broader trend among Indian startups. Several companies, including Pine Labs, Udaan, Meesho, Groww, and Razorpay, are actively exploring the possibility of shifting their domiciles back to India. PhonePe, a digital payments app, successfully completed the process of moving its domicile from Singapore to India in 2022.
Traditionally, Indian startups established overseas bases for streamlined funding processes and favorable tax policies. However, the Indian government’s efforts to introduce new regulations and improve the business environment have prompted a reconsideration of domicile locations.
There are indications that the government plans to ease certain tax burdens associated with redomiciling businesses in India this year, providing a significant incentive for startups to consider relocation.
Despite Livspace posting a net loss of nearly INR 621 crores in FY23, the company experienced substantial revenue growth, with operations generating INR 1,148 crores.
