Home Interior & Renovation Startup Livspace Losses Cut by 46%, Revenue Over Rs 1,200 Cr in FY24

Following an 85% year-on-year growth in FY23, omnichannel home interior and renovation platform Livspace experienced a modest 20.86% increase in scale during the fiscal year ended March 2024. However, the Singapore-based company managed to keep its losses under control throughout the same time period.

Livspace’s operating revenue climbed to Rs 1,185.7 crore (SGD 192.48 million) in FY24 from Rs 981 crore (SGD 167.7 million) in FY23, according to its Singapore-based group company’s consolidated annual financial records.

Livspace’s platform allows homeowners to discover pre-designed rooms, kitchens, and storage places. Revenue from interior projects accounted for 94% of total revenue, which rose 22.7% to Rs 1,110.65 crore in FY24 from Rs 905.35 crore in FY23.

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In FY24, the Bengaluru-based company produced an additional Rs 69 crore in revenue from product sales and allied contractual services. It also increased income by Rs 48.4 crore, primarily from interest on fixed deposits, bringing total income to Rs 1,234 crore in FY24, up from Rs 1,005 crore in FY23.

For the home interior brand, the cost of sales, which included project materials, inventory, and materials consumed, accounted for 35.6% of total expenses. Despite a 6.7% increase, its cost remained consistent at Rs 586.8 crore in FY24.

Employee perks fell 11.6% to Rs 579 crore in FY24, including Rs 124 crore in ESOP expenses (non-cash). Marketing, rent, brokerage, and technology expenses contributed to a total spending of Rs 1,647.8 crore (SGD 267.5 million) in FY24, a decrease from Rs 1,768 crore (SGD 302.2 million) in FY23.

Modest scale development, along with restricted spending on employee perks and marketing, enabled Livspace cut its losses by 45.75% to Rs 413.8 crore (SGD 67.1 million) in FY24, down from Rs 762.8 crore (SGD 130.4 million) in FY23. Its ROCE and EBITDA margins increased to -79.5% and -27%, respectively. Livspace spent Rs 1.39 to earn one rupee in FY24.

According to Livspace’s founder Ramakant Sharma, the company is preparing to relocate its headquarters from Singapore to India, and the board has approved the move. It plans to go public within the next 18-24 months.

Despite its best efforts to cut losses while maintaining growth, the corporation has a difficult challenge in continuing these efforts. More often than not, cost cutbacks become ineffective, or worse, make you wonder what you were doing with them in the first place. Livspace is on track to find one of those two realities shortly.