Livspace, an Indian startup engaged in the interiors, home design and renovation business has received an investment of $10 million-$15 million from the Ingka Group, more popularly identified as the franchise partner of IKEA, as per an ET report. Some media reports also suggest that IKEA may make a direct investment in Livspace going ahead. The last fund raising by Livspace was $70 million by Goldman Sachs and TPG Growth.
Livspace has indicated that the funds now raised will be used by the company in developing new home interior solutions and expand its footprint. The company believes that its vendors and interior designers will also gain from a wider choice in terms of designs etc.
Livspace relies on technology to produce thousands of images which they offer to their customers. Once the customers pick their choices they are integrated into the overall scheme and the customers can get to visualize their future home digitally before making a final decision.
The Ingka Group and IKEA see this investment, though minority in nature, as a synergistic one and gives it a toehold on the online space. It could become an omni-channel business which will be a win-win deal for all of them. Ingka Group has already issued a statement on how they see this association with IKEA would be of benefit to them.
IKEA has its own plans to expand its presence in India beyond its single city presence in Hyderabad. Mumbai is its next destination, which will then be followed by Bangalore, Gurugram, Surat, Chennai and Ahmedabad, not necessarily in that order. The company seems to have identified the land for these stores and work is underway to establish stores.