The investment arm of Ingka Group, the largest franchisee of Swedish furniture retailer Ikea, has invested an undisclosed amount in home design startup Livspace in what will be one of the first such deals by the firm in Asia. Ingka Investments has put $10-15 million in Livspace, valuing the Bengaluru-based, five-year-old company at about $300 million, according to one of the sources briefed on the matter.
The development comes after Ikea opened its first Indian store in Hyderabad in August last year, after a 12-year wait. The store was opened by Ingka Group, which represents 90% of total Ikea retail sales through 367 stores in 30 markets.
The deal was not a part of a new or a separate financing round for Livspace, which had raised $70 million from private equity firms TPG Growth and Goldman Sachs last year, said co-founder Ramakant Sharma.
The two companies were exploring a partnership. “The idea was to learn a lot from their expertise as they are a pioneer in modular furniture, while also get an understanding of offline retail and building supply chain,” said Sharma, adding that Ingka will not take a board seat at Livspace. While the commercial arrangement between two companies has not been finalised yet, it may include Livspace offering the Ikea catalogue to its customers.
Avendus Capital was the adviser to Livspace on the transaction. Livspace has been organising the home interior design market through its omnichannel presence and has designed 10,000 houses till date across metros.
Source: The Times of India
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