Bengaluru: Online home design start-up Livspace is in talks to raise $50 million from Verlinvest, Ratan Tata’s UC-RNT Fund and existing investors, two people familiar with the matter said. This is almost double the amount the company has raised in total till date.
Livspace, operated by Home Interior Designs E-commerce Pvt. Ltd, last raised capital in August 2016 in a funding round led by Bessemer Venture Partners, when it got Rs100 crore (around $15 million).
Including that amount, the company has raised about $27.6 million in three rounds between December 2014 and August 2016 from Bessemer, Helion Venture Partners, Jungle Ventures and Square.
Livspace didn’t respond to an email seeking comment.
The company was founded by Anuj Srivastava and Ramakant Sharma, former senior executives at Google (Alphabet Inc.) and Myntra Designs Pvt. Ltd, respectively, along with Shagufta Anurag, founder of architectural design consultancy Space Matrix.
Just this month, Livspace said it planned to pump in Rs30 crore to strengthen its brick and mortar presence. It said it would add between five and seven experience centres in new locations, including Hyderabad, Chennai and Pune. Livspace currently operates stores only in Bengaluru, Mumbai and Delhi-NCR.
Livspace is not the only company in the furniture, furnishings and interior design space to invest in physical stores. While HomeLane is investing $5 million to expand its offline presence, Pepperfry is also expected to double its offline presence by March 2019. Urban Ladder, too, is, infusing $3 million.
These companies have also been active when it comes to fund raising over the past year or so. Furniture retailer Urban Ladder said it raised $12 million from investors Kalaari Capital, SAIF Partners, Sequoia Capital and Steadview Capital, in what comes as the second internal round for the start-up more than three months ago.
Should Livspace complete raising $50 million from Verlinvest, UC-RTN and existing investors, it would have raised much more than its direct peer HomeLane. HomeLane has raised around $68 million according to CrunchBase.
Still, Urban Ladder and Pepperfry—who directly sell furniture and furnishings unlike Livspace and Homelane —have raised significantly higher amounts over the years.