Livspace Success Story & Business Model – Fastest Growing Interior Design Brand
Livspace is an interior design company with its headquarters located in Singapore. The company was founded by Ramakant Sharma and Anuj Srivastava back in the year 2014. E-commerce platforms and online businesses are slowly starting to take over the world market.
A developing country like India is one of the best marketplaces to try out something new as there will be a lot of customers for it. Livspace was something different but offered something similar to online services which offer interior design and renovation services both in Singapore and in India.
Livspace has got its business available both offline and online. The reason why it is being mentioned online is that Livspace’s official website allows customers to fill out a form and meet with designers so that customers can get a free consultation and get an idea about the cost as well.
services offered by Livspace have proven to be fantastic according to reviews made by the customers. Apart from its usual products and services, Livspace was one of the first companies that offered its platform to renovate homes digitally.
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How Livspace Started?
Livspace was introduced to the people in the year 2014 with its interior design services. Now, the company has rolled out several services like modular kitchen services, painting, wall designing, and many more. The company was started by two IIT Kanpur alumni named Anuj Srivastava and Ramakant Sharma. Even though the company has its headquarters based in Singapore, some of its offices are located in Bangalore, New Delhi, and Mumbai.
By the year 2016 came, the company had already started miscellaneous services like its famous home design automation platform. This was a platform for interior designers that helped them design interiors digitally on the platform and later the company also announced its design partner community program.
The company did not stop expanding its business in India as back in the year 2018, the company had officially announced its expansion in Hyderabad as well. During these years, Livspace opened up several offline stores that too with virtual reality setups and has spent hugely on its advertising and marketing campaign. Last year, the company launched its brand campaign, ‘Love the way you Liv’.
Livspace Founders & CEO
Ramakant Sharma and Anuj Srivastava founded Livspace. Both these entrepreneurs were IIT Kanpur alumni and are the core people of the company. Ramakant Sharma is not just the founder and COO of Livspace but he is also the Operating partner at Jungle Ventures. He has also co-founded Violetbag.com at Zing Ecommerce Pvt. Ltd.
Ramakant’s contribution to Livspace has proved to be the backbone for the success of the company. Ramakant Sharma understood the value of technology and how it could be the future of the world of business. this is why he is interested to to bring technological innovations to his company.
Anuj Srivastava is yet another entrepreneur that had a solid contribution to the success of his company. Just like Ramakant Sharma, Anuj always had an interest in technology. Currently, he is the CEO of Livspace. Anuj is not just an entrepreneur running his interior design business in Singapore and India but he recognizes himself also as an angel investor, creator, and Googler.
Both the founder and co-founder of Livspace have made several investments in their business career. These entrepreneurs are helping young start-ups by funding them and creating better opportunities for such businesses.
Livspace Business Model
The business model of this giant interior design company has been kept simple yet effective. Livspace has a business model that connects the vendors and designers directly to the house owners. The platform that the company offers acts as a marketplace for designs for homes.
Apart from that, transactions that are made through its platform does have certain commission separated as an income source to Livspace. In simple terms, the business model of Livspace is neither one nor two but a three-sided marketplace connecting house owners with elegant designers and suppliers of home design products and services.
Apart from the commission for every transaction it earns through its platform, Livspace earns directly from its sale of products and services. Looking at the growth of the company and its expansion in different cities, areas, and regions it can be expected that Livspace could bring in new ways of earning in the upcoming days.
How Livspace Created Difference?
Livspace came to light by the year 2014 and it solved the problem that every interior designer solves which is making our living space at home spacious and comfortable. A home is not a home until it is spacious and comfortable for the family that is living in it. this is where Livspace’s services came in and with its services, many people got the best homes.
Livspace created a difference by offering the best services to its customers thus making its presence felt in the country. However, Livspace created something new for its designers where they created a platform for them so that they could design virtually. This new initiative saved a lot of time and effort for interior designers.
The company's mission statement states, ‘The home that you always wanted is the home you deserve,’ which is a statement that the company proves every single time it serves a customer. Customers have reviewed its services excellently with an overall rating of 4.8 out of 5 stars. Offering its best services is the only reason why Livspace had created a difference and is continuing to do so.
Livspace Success Story
Livspace surely made a difference in many homes with its extraordinary interior design services but just like any other top business it had to face some difficulties along the way. One of the biggest challenges that Livspace had to face was financial challenges. During the financial year 2016-17, the company incurred heavy losses even after its revenues had doubled during that time. The numbers (loss) were massive but, it was nothing when Covid-19 hit the world.
Just like most businesses Livspace had a major setback during this period when the lockdown was imposed. Now, due to the pandemic, the company had to lay off around 450 valuable employees as its operations were quite inactive due to the pandemic. The success of the company began to surge after the pandemic lockdown was taken off. Now, the company is doing great business and earning quite decent revenue.
Livspace is operating its business successfully not just in India but also in Singapore. Here in India, the company is operating its business in more than 13 cities. Company officials are looking to expand their business further to other cities as well soon.
Livspace Growth and Revenue
The success story will give you pretty much the idea about the growth of Livspace. It is because of the valuable contribution of the founder and co-founder, Livspace has become a successful company in Singapore and as well as here in India. When Livspace came to India the company had services in modular kitchens and wardrobes. By the year 2016, the company had rolled out its design platform where interior designers could design digitally. They had also announced their interior design community program.
The interior design company later opened several offline stores in different cities with huge investments. The company made advertisements on several media channels and as well as worked on its marketing campaign as well. currently, the company could even afford cricketer Virat Kohli and his wife famous Bollywood actress Anushka Sharma as their brand ambassadors.
The growth made by the company was impressive. Talking about the revenue earned by the company then they had raised around $431.4 million in funding last year in Feb. This is when they had become one of the companies to join the unicorn club. It was during the same year when the company saw a growth of 96.3% which amounted to INR 80.17 crore. The company’s total revenue from its operations grew by about 570 crores in the financial year 2022.
Livspace Competitors
Competitors for Livspace were some of the best startup companies. Some of them were Pepperfry, Urban Ladder, Stokers, HomeLane, American Furniture Warehouse, and many more. There is still cutthroat competition among the competitors but Livspace is spending hugely on its marketing and advertisement.