Livspace: Livspace to apply for domicile transfer from Singapore for IPO in 2025-26

Home decor startup backed by Ikea Living space is set to file an application to shift its domicile to India from Singapore and has obtained in-principle approval from the board for this, the founder said. Ramakant Sharma ET customs.

The company plans to launch its initial public offering in late 2025 or early 2026, but the final timing could still change, he said.

The Indian government recently removed the requirement for National Company Law Tribunal approval to relocate to India, thereby reducing the time required for relocation. Livspace could become one of the first companies to seek approval under this new regime.

“We have plans for a IPO in 2026 or even late 2025, but it would be sometime around that time as we definitely plan to go public in the next 18 to 24 months. There are very few consumer internet companies “We are growing at 35 to 40 percent annually and are profitable at that scale,” said Sharma, who is also COO of Livspace.

An initial reading of the policy change on domicile renewal indicates that the overall timeline will be significantly reduced to close the migration of holding companies here, he said.

“We have not yet started the process but we will do so soon. The refinancing process is critical for our IPO, of course, and the government is being very helpful (with the recent policy change),” said Sharma, who is also an active angel investor.

Livspace would join a growing list of top-tier Indian startups that have domiciles in Singapore and the US. ET has been reporting on companies like Razorpay, Meesho, Pine Labs, Eruditus, Kreditbee and Zepto looking to shift their holdings to India, essentially to launch their IPOs sometime over the next two to three years. Several startups that are now big names had set up bases overseas for easier funding as well as due to more flexible tax policies in such jurisdictions. In recent years, the Indian government has been working to improve regulation to attract such companies back.

Finance and expansion

Livspace, also backed by TPG and KKR, currently has a forecast revenue run rate of Rs 1,500 crore as per its August fiscal 2025 figures. Sharma said the company will be Profitable Ebitda in the current financial year after having strengthened its finances.

“In FY24, we had a negative Ebitda of 9% and that was negative 4% in August. We will be Ebitda positive in March 2025,” he said, adding that the company reported operating revenue of Rs 1,200 crore in FY24 with a net loss of Rs 246 crore. For FY23, it reported revenue of Rs 1,147 crore.

Sharma said the company is looking to acquire a consumer brand that will add to its existing business, rather than acquiring a company in its core area of ​​expertise. “We are working with a bank as well for the same, but it would be a consumer brand in the home appliances and furniture business. We have started building this organically as well,” he said, adding that the company will double the number of stores to 200 by March.

“Offline expansion is led by non-metro markets. Cities like Patna, Varanasi, Kanpur, Jammu and Kashmir, Guwahati have done very well for us,” Sharma said. The company is adding five to six stores every month, he said.

In its attempt to focus on high-margin businesses, it has abandoned all business-to-business agreements (e.g. with sales offices) citing low margins.

Livspace, according to Sharma, offers its services in the range of Rs 1 lakh to Rs 1 crore through various brands such as Bello (Rs 1-3 lakh), Select, Vesta and Vinciago (in the range of Rs 30 lakh to Rs 1 crore).

Livespace became a unicorn in 2022, following a $180 million funding round at a valuation of over $1 billion.