After an 85% year-on-year growth in FY23, omnichannel home interior and renovation platform Livspace saw a modest 20.86% growth in scale during the fiscal year ending March 2024. The Singapore-headquartered firm, however, kept its losses in check during the same period.
Livspace’s revenue from operations increased to Rs 1,185.7 crore (SGD 192.48 million) in FY24 from Rs 981 (SGD 167.7 million) crore in FY23, according to its group company’s consolidated annual financial statements in Singapore.
Livspace allows homeowners to discover pre-designed rooms, kitchens, and storage areas on its platform. Revenue from its interior projects biz formed 94% of the overall revenue which increased 22.7% to Rs 1,110.65 crore in FY24 from Rs 905.35 crore in FY23.
The Bengaluru-based company generated additional revenue of Rs 69 crore from the sale of products and allied contractual services in FY24. It also added Rs 48.4 crore in income, mainly from interest on fixed deposits, bringing the total income to Rs 1,234 crore in FY24, up from Rs 1,005 crore in FY23.
For the home interior brand, the cost of sales, including project materials, inventories, and materials consumed, accounted for 35.6% of the overall expenditure. Despite a 6.7% surge, this cost remained steady at Rs 586.8 crore in FY24.
Expense Breakdown
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- Cost of sales
- Marketing
- Employee benefits
- Rent and maintainance
- Brokerage and commission
- Technology
- Others
Its employee benefits decreased by 11.6% to Rs 579 crore in FY24, which includes Rs 124 crore in ESOP expenses (non-cash). Marketing, rent, brokerage, and technology expenses contributed to an overall expenditure of Rs 1,647.8 crore (SGD 267.5 million) in FY24, down from Rs 1,768 crore (SGD 302.2 million) in FY23.
FY23-FY24
| FY23 | FY24 |
| EBITDA Margin | -69% | -27% |
| Expense/₹ of Op Revenue | ₹1.80 | ₹1.39 |
| ROCE | -98% | -79.5% |
Modest growth in scale, along with controlled spending on employee benefits and marketing, helped Livspace reduce its losses by 45.75% to Rs 413.8 crore (SGD 67.1 million) in FY24, down from Rs 762.8 crore (SGD 130.4 million) in FY23. Its ROCE and EBITDA margins improved to -79.5% and -27%, respectively. On a unit level, Livspace spent Rs 1.39 to earn a rupee in FY24.
Livspace is all set to shift its domicile to India from Singapore and the firm has also received approval from its board, according to the company’s founder Ramakant Sharma. It has plans to go public in the next 18-24 months.
The company, for all its all out efforts to reduce losses without giving up on growth faces a tough challenge to sustain these efforts. More often than not, there is a point where cost cuts become counter productive, or worse make you wonder what you were doing with them in the first place. Livspace is on course to discover either of those two realities soon.
*Currency converted from Indian rupees to Singapore dollars:
FY24: SGD 1 = 61.6 rupees & FY23: SGD 1 = 58.5 rupees
