Wednesday, May 22, 2024
HomeReal EstateLivspace says India business becomes 'cash flow positive' on robust revenue growth 

Livspace says India business becomes ‘cash flow positive’ on robust revenue growth 

Livspace, a home renovation platform, has achieved “cash-flow positive” status in its Indian business due to significant revenue growth, according to a top company official.

Livspace anticipates a 30% increase in revenue for the 2023-24 fiscal year, compared to around Rs 1,100 crore in the previous fiscal year. Its India business constitutes 80-85% of its overall turnover.

During the period under review, the company’s EBITDA losses decreased from 96.86 million Singapore dollars to 95.35 million Singapore dollars.

“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,” Livspace, co-founder Ramakant Sharma told PTI.

Livspace Chief Strategy Officer Ankit Shah mentioned that the revenue for the last fiscal year has not been finalized, but it is expected to be approximately 30% higher in 2023-24.

He emphasized that the company is no longer burning cash and is generating sufficient cash flow to expand its business organically.

“We have around USD 100 million cash in our balance sheet,” he said, adding that the fund will be utilized for expansion.   

“Business expansion, investment in branding and experience centres, and improving the supply chain have helped the company achieve high growth in the last two fiscal years,” he said.

Livspace actively seeks M&A opportunities to expedite growth and strengthen its market position.

Leveraging its proprietary technology, Livspace offers a comprehensive renovation solution for homeowners, covering everything from design to managed last-mile fulfillment for all rooms in a home. Currently operating in over 50 cities in India, the company aims to expand its presence to 100-150 cities within the next 18 months.

Livspace has secured approximately USD 450 million in capital from investors, including KKR, Ingka Group Investments (a 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.

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