According to a senior corporate executive, omnichannel home interior platform Livspace is expanding to the Middle East, starting with Saudi Arabia. It has signed a joint venture with the Alsulaiman Group (ASG).
In the joint venture with ASG, the operating partner of Swedish furnishings retailer Ikea in the region, the business would invest $25 million (Rs 187.5 crore).
“ASG gets customer insights and supply-chain solutions to the JV while we bring our product and execution capabilities,” Livspace cofounder Ramakant Sharma told ET. It is expecting healthy revenue from the home interiors and renovation segments in Saudi Arabia.
Expansion into new markets abroad, more non-metro and smaller cities within India, and improved unit economics will drive the company’s growth over the next year to year-and-a-half, according to Sharma, who is also the company’s chief operating officer.
“Within the GCC (Gulf Cooperation Council), we intend to expand to another six to seven cities. It is a $15 billion worth of total addressable market that we are chasing,” Sharma said.
Sharma estimates that the company’s current revenue run-rate is roughly $175-180 million and that it will increase to $300-350 million in the next two years.
Currently, the organisation is operating in India and Southeast Asian regions such as Singapore.
“We are trying to build a truly global company out of India with almost 20% of our new sales coming in from markets outside of India,” Sharma said.
The company generated $225 million in new sales for the fiscal year ending March 31, 2020. “We expect new sales to be around $650-700 million over the next 24 months,” Sharma added.
Livspace claims to be the most extensive omnichannel home interior and renovation platform today, founded in 2014 by Sharma and Anuj Srivastava. It has provided over 100,000 rooms and has over 7.5 million products for sale in its marketplace.
Livspace provides interior design, execution, remodelling services, material supply, and home fit-out aspects. Mobile applications, artificial intelligence, machine learning, and visualisation solutions for the home renovation business are also priorities.
Bengaluru, Delhi, Noida, Gurgaon, Mumbai, Thane, Pune, Hyderabad, Ahmedabad, Kolkata, Kochi, Jaipur, and Chennai are among Livspace’s 13 metro and non-metro locations in India.