Ikea invests in Livspace, a one-prevent platform for interior design based in India
Fresh from raising $70 million ultimate 12 months through large names and Goldman Sachs and TPG Growth, Livspace, an India-based startup that gives a one-stop-store for interior layout, has lured yet any other marquee investor: Ikea.
The startup said today it had taken undisclosed funding from Ingka Investments, the VC arm of Ikea determines Ingka Group, which operates ninety percent of Ikea’s retail footprint. Live space CEO and co-founder Anuj Srivastava declined to provide a determination for the deal. Still, he instructed TechCrunch that the state concerned is a minor one whilst there’s no plan to bolt a bigger spherical directly to this funding. Deal Street Asia first-mentioned information about the deal.
“There is a strong strategic and business capability,” Srivastava, a former Googler who started Livspace in 2015, said of the brand new investor. “This is a possibility to create the first-rate viable omnichannel revel in for clients.”
India is a difficult vicinity for international retail companies, but Ikea has made development in recent times.
The business enterprise opened its first India-based totally keep in Hyderabad last yr. Having gained FDI approval to function retails shop, it’s for planning a big growth with 25 new shops inside the offing.
For those blind to it, live space runs a carrier that is geared toward taking the problem out of interior design. The organization’s platform connects owners with designers and the supply chain to go through thoughts, selected a plan, and put in force it. That consists of, among different matters, 3-d virtual renders of a renovation, offline conferences at a Livspace design middle, and, in a few instances, customized fixtures. By bringing all parties together, Livspace claims to provide fee savings to customers in addition to better rates and more efficient use of time for designers.
That model resonates with Ikea (Ingka), in keeping with Srivastava, who said the agency aspects started speakme following the declaration of Livspace’s Series C round remaining September.
“We’ve felt the natural synergy always existed,” he stated. “This is an incredibly sturdy endorsement of our vision.”
Synergies, indeed, although fairly frustratingly neither party is announcing how they may paintings together going forward. The obvious concept could be that Ikea merchandise emerges as available through Livspace, but Srivastava said the specifics are nonetheless to be agreed upon.
Further down the line, though, he admitted that Ikea’s involvement should gas an international expansion past India. Going overseas is something that the company is overtly talked up within the beyond. With Ikea’s worldwide footprint of 367 stores across 30 markets, the funding from Ingka may want to give Livspace jogging begin in new markets.
As the information of the alliance, that is something to come later, but.
“The India enterprise is keeping us truly, clearly busy at the moment,” said Srivastava on that possibility.
“We’re engaged in exploratory activities, but there’s no instantaneous plan or timeline,” he delivered as a tease. A new market release isn’t possible until something like 12-18 months down the line, the Livspace CEO said.
Whether or not this deal might be a precursor to an eventual acquisition, such are the synergies, Srivastava said that opportunity isn’t being entertained.
“There is not any such purpose as of now,” he defined. “We maintain to have robust interest from financial traders and retain to perform a good way to live impartially; there’s now even extra notion in our platform technique.”
“There is relatively an investment outlay involved [with] no long time indication of an M&A opportunity,” he brought.
The deal is Ikea’s first in India. However, it isn’t the retail giant’s dalliance in startups with the aid of any method.
The corporation previously acquired TaskRabbit in 2017, and it offered a 49 percent stake in U.S-based kitchen service enterprise Traemand with the intention to a complete acquisition ultimate December. Its investment deals have included taking part in a $31 million Series B for France-based Aledia LED and participation in a $12.Four million spherical for online food store Massmart. The employer has also run social entrepreneurship packages.