Livspace Reports Cash Flow Positivity in India Amidst Revenue Growth

Home renovation platform Livspace has reported a significant upturn in its financial performance, with its India business achieving positive cash flow for the last two quarters. This milestone is attributed to an impressive overall revenue growth, estimated at around 30 per cent for the last fiscal year. The company's revenue surged by 85 per cent annually during the 2022-23 fiscal, reaching approximately Singapore dollar 188 million (around Rs 1,100 crore).

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Livspace's EBITDA losses have seen a slight improvement, narrowing to Singapore dollar 95.35 million from Singapore dollar 96.86 million in the period under review. Co-founder Ramakant Sharma highlighted the company's robust growth trajectory, stating, "Our revenue has grown 50 per cent CAGR (compounded annual growth rate) in the past two fiscal years. We have become cash flow positive from October-December quarter of 2023-24 in India business, which is 80-85 per cent of our total revenue."

Chief Strategy Officer Ankit Shah shared insights into the company's financial health, noting that while final numbers for the last fiscal year are yet to be confirmed, revenue is anticipated to be about 30 per cent higher in 2023-24. Shah emphasized that Livspace is no longer in a cash burn phase and is generating sufficient cash flow to fuel organic business expansion.

"We have around USD 100 million cash in our balance sheet," Shah remarked, outlining plans to utilize these funds for further expansion. He attributed the company's high growth over the last two fiscal years to strategic investments in business expansion, branding, experience centres, and supply chain improvements.

Livspace is also actively exploring mergers and acquisitions (M&A) opportunities to spur growth and strengthen its market position. The company leverages proprietary technology to offer comprehensive renovation solutions for homeowners, covering design through managed last-mile fulfilment for all rooms in a home. Currently operational in over 50 cities across India, Livspace aims to extend its reach to 100-150 cities within the next 18 months.

The platform has successfully raised approximately USD 450 million in capital from a diverse group of investors including KKR, Ingka Group Investments (part of the largest IKEA retailer Ingka Group), TPG Growth, Goldman Sachs, Kharis Capital, Venturi Partners, FFP (Peugeot Group's Holding Company), EDBI, Bessemer Venture Partners, Jungle Ventures, Helion Ventures, and UC-RNT Fund.

This financial uplift and strategic expansion underscore Livspace's commitment to solidifying its presence in the home renovation market while enhancing homeowner experiences across India.