Livspace achieves cash flow positivity in India amid strong revenue growth

Livspace revenue growth: Leading home renovation platform Livspace has reached a milestone by achieving "cash-flow positive" status in its Indian business, driven by robust revenue growth. According to a top company official, Livspace anticipates a remarkable 30 per cent increase in revenue for the fiscal year 2023-24, compared to the previous fiscal year's approximately Rs 1,100 crore.

With India's business contributing between 80-85 per cent to Livspace's total turnover, the company has witnessed a noteworthy reduction in its EBITDA losses, decreasing from 96.86 million Singapore Dollar to 95.35 million Singapore Dollar during the review period.

Ramakant Sharma, Livspace Co-Founder, stated, "Our revenue has grown at a compounded annual growth rate (CAGR) of 50 per cent over the past two fiscal years. We have achieved cash flow positivity in our India business, which represents 80-85 per cent of our total revenue, starting from the October-December quarter of the 2023-24 fiscal year."

Regarding the revenue projection for the last fiscal year, Livspace Chief Strategy Officer Ankit Shah mentioned that the figures are yet to be finalised, but the revenue is expected to show a substantial increase of around 30 per cent in 2023-24. He stressed that Livspace is now generating sufficient cash flow to sustain and organically expand its operations, with approximately $100 million in cash reserves available for strategic deployment.

Shah highlighted, "Business expansion, investment in branding and experience centers, and enhancing the supply chain have been instrumental in driving high growth over the past two fiscal years." Livspace is actively pursuing merger and acquisition opportunities to further accelerate its growth trajectory and bolster its market position.

Leveraging its proprietary technology, Livspace offers a comprehensive renovation solution for homeowners, encompassing design services to managed last-mile fulfillment for all rooms in a home. Presently operational in over 50 cities in India, the company aims to extend its footprint to 100-150 cities within the next 18 months.

Having secured approximately $450 million in capital from prominent investors like KKR, Ingka Group Investments, TPG Growth, and Goldman Sachs, among others, Livspace is well-positioned to capitalise on emerging opportunities and drive sustained growth in the dynamic home renovation market.

(With Reuters inputs.)