IPO-Bound Livspace Claims EBITDA Loss Halved in FY25

Home decor startup Livspace claims to have seen a 23% uptick in its top line in the fiscal year FY25, reporting an operating revenue of INR 1,460 Cr from INR 1,185 Cr in the previous financial year.

On the back of this growth, the startup claims to have narrowed its EBITDA loss by 47% to INR 131 Cr in the fiscal year from INR 246 Cr EBITDA loss incurred in the prior fiscal. In a statement, Livspace said that its EBITDA margin improved sharply from -20.8% in FY24 to -9% in FY25, while gross margin rose 26% YoY to INR 752 Cr from INR 598.5 Cr in FY24.

Important to mention that the startup is yet to file its annual returns report with the registrar of companies (RoC).

The startup noted that results reflect stronger traction in premium and mass-premium residential segments, higher quality of revenue, and ongoing discipline on costs and unit economics.

The claimed improvement in the startup’s financial health comes in the run-up to it filing for an initial public offering. In 2024, CEO Ramakant Sharma said that Livspace was looking to launch its IPO by late 2025 or early 2026. As of now, the startup is expecting to reverse flip to India by 2025-end.

While it is yet to file its IPO papers, Livspace added that its operational losses, measured by EBITDA, are narrowing and are expected to reach around 4–5% of revenue, while losses on its confirmed orders are even lower at 2–3%.

This trend, it said, indicates that the business is steadily improving its profitability at the operational level, and with such a trajectory, there is a clear path toward achieving positive EBITDA in the near future

Livspace also closed the year with INR 708 Cr in cash reserves, especially after its parent infused around INR 789 Cr this year so far into the Indian subsidiary.

Founded in 2014 by Sharma and Anuj Srivastava, Livspace is an omnichannel home interiors and renovation platform connecting homeowners with professional interior designers, contractors, and vendors for design, renovation and furnishing solutions.

The startup operates a multi-faceted business model, combining marketplace, ecommerce and service-based revenue streams. Its income sources include service fees for project execution and management (covering design consultation, project planning and more), commissions from sales of furniture and décor items via its aggregator platform, and revenue from private-label and value-added products.

Livspace has raised over $450 Mn (around INR 3989.8 Cr) in capital to date, and it counts KKR, Ingka Group Investments (IKEA’s parent), TPG Growth, Goldman Sachs, Bessemer Venture Partners and Jungle Ventures, among its marquee investors. It competes with startups such as HomeLane and DesignCafe.

As per its website, Livspace has designed and delivered over 1 Lakh homes with the help of 3,500+ expert designers across 100+ cities in three countries

In FY25, Livspace deepened its presence across multiple business verticals and geographies. Livspace said that it diversified its offerings into adjacent home categories through its Livspace Home vertical, which includes soft furnishings, furniture and homeware. It has also launched a private-label line of kitchen appliances, such as hobs and chimneys.

On the retail front, Livspace operates over 150 stores across more than 90 cities in India, including both company-owned (COCO) and franchise-operated (FOFO) formats. The startup now plans to scale its network to over 200 stores across 100+ cities by the end of the current fiscal year.

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