Omnichannel home interior and renovation platform Livspace is in talks to acquire its competition HomeLane, according to three sources aware of the details of the potential transaction.
“The talks have been going on for several weeks and the terms of the deal are being finalized,” said one of the sources requesting anonymity as conversation is private.
If the talks materialize into a deal, the combined entity would be the largest home interior and design space in the phygital space.
Sources outline that raising fresh money won’t be easy for HomeLane, which scooped $50 million in its last round in September 2021. HomeLane’s valuation stands at around $250 million.
“The deal will largely consist of stock with some cash component,” said the second source who also wished not to be named.
Livspace declined to comment on the story, while Homelane didn’t respond to our queries until the publication of this story.
It’s worth noting that Livspace has earmarked $100 million for strategic acquisitions. In October 2022, the company said that the corpus will largely go for acquisitions as it looks to go deeper into existing geographies and add new categories.
Livspace is acquiring any startup after a long gap. In 2015, it took over DezignUp, Dwll.in and YoFloor.
Livspace and HomeLane help property owners furnish and install fixtures in their new apartments and houses. Livspace is the largest omnichannel firm in this space, and turned unicorn after raising a $180 million worth Series F round in February last year.
Following the last funding raised by HomeLane, Accel was the largest stakeholder in the company with 17.4% stake. Sequoia Capital and IIFL held 11.5% and 10.8% shares, respectively.
Revenue wise, Livspace was bigger than Homelane in the fiscal year ending March 2022. Livspace posted Rs 570 crore in revenue and Rs 646 crore loss in FY22. Homelane ended the same fiscal year with Rs 426 crore topline and Rs 153 crore loss.
Meanwhile, both firms have also gone through layoffs in the ongoing funding winter. According to reports, Livspace fired over 100 employees, whereas HomeLane sacked 30-40 employees in March this year.