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

India's business contributes 80-85 per cent to the company's total turnover.

Home renovation platform Livspace has become "cash-flow positive" in Indian business on the back of robust growth in its revenue, a top company official said.

Livspace is expecting around 30 per cent growth in its revenue during the 2023-24 financial year from around Rs 1,100 crore in the preceding fiscal.

India's business contributes 80-85 per cent to the company's total turnover.

The company's EBITDA losses narrowed to 95.35 million Singapore dollars from 96.86 million Singapore dollars during the period under review.

"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," Livspaceco Founder Ramakant Sharma told PTI.

Asked about the revenue during the last fiscal year, Livspace Chief Strategy Officer Ankit Shah said the numbers have not been finalised yet but the revenue could be around 30 per cent higher in 2023-24.

He asserted that the company is not burning cash anymore and is generating enough cash flow to expand business organically.

"We have around USD 100 million cash in our balance sheet," he said, adding that the fund will be utilised 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 is actively pursuing M&A opportunities to accelerate growth and enhance its market position.

Using its proprietary technology, Livspace provides a one-stop renovation solution for homeowners -- from design to managed last mile fulfilment for all rooms in a home. In India, the company is present in more than 50 cities and plans to expand business to 100-150 cities in the next 18 months.

Livspace has raised around USD 450 million in capital from investors such as KKR, Ingka Group Investments (part of 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.