Livspace doubles the losses in FY18; revenue increases by 82% to Rs 40.83 Cr

Livspace

Online home decor startup Livspace has slightly improved upon its financial performance in FY18.

In its latest RoC filings with MCA, the company revealed that the revenue clocked in FY18 increased by 82.1 per cent to Rs 40.83 crore from a Rs 22.42 crore figure in FY17.

It is interesting to note that in last fiscal the company’s major source of operational income was from International sales, Rs 14.21 crore.

During FY18, the startup only dealt in its native country and while the homeland income jumped 5.5X from Rs 7.27 crore to Rs 40.32 crore, the overall operating income increased by 87.7 per cent to Rs 40.32 crore from Rs 21.48 crore in FY17.

The expenses of the Bengaluru-based company saw a 93.3 per cent hike, from Rs 70.17 crore to Rs 135.64 crore. The major component of the spending was employee benefit, which saw a 57.1 per cent spike to Rs 61.89 crore. Meanwhile the marketing expense soared 3X to Rs 21.04 crore.

Losses incurred by the firm almost doubled, from Rs 47.75 crore to Rs 94.81 crore. Still, the gap between the topline and baseline decreased in the slightest as LivSpace lost Rs 2.1 to earn a rupee in FY18 as compared to losing Rs 2.3 for the same in FY17.

Not to forget, the losses had soared 5X in FY17 to Rs 47.7 crore, making a 98.6 per cent growth in FY18 far more controlled than before.

During the fiscal year, the company picked up Rs 13 crore as debt capital from Trifecta Venture Debt Fund. Before this Livspace had scooped up a funding round of $15 million in 2016.

In May this year, the company had again received a debt fund of Rs 12 crore from Trifecta Capital.

Few months ago, the Anuj Srivastava and Ramakant Sharma founded company had bagged a staggering Series C round of $70 million led by TPG Growth and Goldman Sachs. Existing investors Helion Ventures, Bessemer Venture Partners, and Jungle Ventures had also participated in the round.

The four-year old startup is expected to be valued at $250-300 million plans to expand into Pune, Chennai and six more cities by the end of 2019.

The company compets with HomeLane and MyGubbi expects to achieve an annualised $100 million gross revenue by FY19 and claims to be profitable in Bengaluru, Mumbai, and Delhi. However, the financial reports of FY18 suggest that this scenario is highly unlikely.

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