Ingka Investments, the investment arm of Ingka group, has picked up a minority stake in Bengaluru-based online platform Livspace that provides personalised home interior design solutions. Financials pertaining to this investment were not disclosed.
An Ikea franchisee operating 367 Ikea stores in 30 countries, Ingka group also operates 45 shopping centres globally.
The investment in Livspace, according to Ingka Group, will enable it to further develop and expand as an innovative home improvement, design and renovation platform.
Krister Mattsson, head - Ingka Investments, Ingka Group, said, “With minority investments like this one, Ingka Investments is always exploring opportunities and looking into interesting solutions, relevant for our customers. By providing equity to grow their business, both in India and internationally, we support their efforts to enable the many people to live a more sustainable, connected and affordable life at home.”
The investment comes at a time when the competition is heating up in the organised home solutions space in India. Earlier in February, Godrej & Boyce began aggressively pursuing the experience store concept as Ikea started preparations to launch its second India outlet at Navi Mumbai sometime in 2019. The Swedish company opened its maiden India store in Hyderabad.
In a statement to DNA Money, an Ikea India spokesperson said that retail is not a part of this deal and is being done independently by Ingka investments.
Peter Betzel, chief executive officer, Ikea India, said, “We welcome this decision from Ingka Investments to invest further into India. We have ambitious retail expansion plans over the coming years to reach many more people in India. By keeping a holistic approach to the Indian market, we will together make even more impact in the home furnishings market, creating a better everyday life for the many people.”
A marketplace offering an end-to-end home design experience/solution, Livspace is promoted by Anuj Srivastava and Ramakant Sharma, and started operations in 2014. The company has, reportedly, in the past raised a total of $97.6 million from a clutch of investors including TPG Growth, Goldman Sachs, Bessemer Venture Partners, Helion Ventures and Jungle Ventures.
