Media conglomerate Bennett, Coleman & Company Ltd (BCCL) has invested in Bangalore-based online home decor startup Livspace.
Livspace, operated by Home Interior Designs E-commerce Pvt. Ltd, has allotted a share and a warrant to BCCL. The total deal value is INR 11.05 crore.
Livspace co-founder Ramakant Sharma confirmed the fundraising and said BCCL’s investment is via an ad-for-equity deal.
Till date, the five-year-old company has raised a total of around USD 28 million in equity funding from investors.
In 2016-17, Livspace’s gross revenue rose more than doubled to INR 22.4 crore from INR 9.13 crore the previous year. Operational revenue, or income from its core services, rose to INR 21.4 crore from INR 8.9 crore.
Gross expenditure surged to INR 70.16 crore from INR 18.9 crore, as employee expenses soared to Rs 39.38 crore from INR 11.2 crore. Other expenses rose to INR 27.7 crore from INR 7.2 crore. This included costs on operating leases for office spaces, brokerage fees, recruitment expenses and sub-contractor fees among others.
Consequently, losses widened nearly five-fold to INR 47.74 crore from INR 9.82 crore in the previous year.
The company, which was founded by in 2012 by former Google and Myntra executives Srivastava and Sharma, helps home owners discover pre-created looks for rooms, kitchen and storage areas. Customers can select and purchase these looks, which are created by international designers and personalise them for delivery on the basis of material, colour, style and so on. Users can also get tailor-made designs by visiting Livspace’s offline showrooms.
(Source: www.vccircle.com)
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