Home interior designing startup Livspace has seen losses soar by nearly five times in financial year 2016-17, even while revenues more than doubled. The company, registered as Home Interior Design Ecommerce Pvt Ltd, saw revenues increase to INR 22.4 crore from INR 9.1 crore the previous year, while losses increased to INR 47.7 crore from INR 9.8 crore in the same period, as per RoC data sourced from Tofler.
Livspace is an online end-to-end home design and renovation platform that offers a marketplace to connect home owners with certified interior designers and vendors. The company was founded in 2012 by former Google and Myntra executives. Livspace had raised INR 100 crore in funding last year from Bessemer Venture Partners, Singapore based Jungle Ventures and Helion Ventures, bringing its total funding to over USD 26 million. The firm’s employee benefit expenses rose to Rs 39 crore in FY17 from INR 11 crore the previous year. Other expenses also increased from INR 7 crore in FY16 to INR 27 crore, as per the filings.
“The increase in losses is primarily driven by increased investments in expansion to newer cities, various tech R&D projects including VR, and growth of the design partner community,” co-founder Ramakant Sharma said.
“Our current investments are expected to boost revenues by 500%. We’re set to close FY 17-18 with INR 110 crores in revenue, as opposed to INR 22.4 crore in FY 16-17. Livspace, as announced earlier, has its eyes on expanding to cities such as Hyderabad, Chennai, Pune in 2018, and the initial pilot shows a lot of success and promise,” he said.
Livspace currently serves customers in Bengaluru, Gurugram, Noida, Delhi and Mumbai. Last year, the company claimed it had become profitable in Bengaluru.