Livspace is a home interior and renovation company established in 2014 by Anuj Srivastava and Ramakant Sharma. The company’s headquarters is in Bangalore. The company allows homeowners to discover pre-created looks for rooms, kitchens, and storage areas on its platform.
As per the audited financial statements of the company, they have generated a revenue of INR 570 crores from its operations during the financial year ‘22.
The sale proceeds from the sale of products accounted for INR 310 crores during FY22. This is the major source of revenue for LivSpace. The company generated a revenue of INR 260 crores from the marketplace vertical that includes its 3500 designers.
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The company also generated a non-operating revenue of INR 9.24 crores. The non-operating revenue of the company has seen a downfall in FY22.
As per the expenses sheet, the company spent INR 414 crores on its employee benefit expenses. The employee benefits expenditure also includes INR 76 crores on ESOPs.
The cost of interior designing rose to INR 394 crores during FY22. The cost of interior designing includes both the material fee and service charges.
As a part of its marketing activities, the company has on-boarded Virat Kohli and Anushka Sharma as its brand endorsers and made a campaign “Love the Way you Liv” with them. This took the marketing costs of the company to INR 164 crores for FY22.
At the same time, the brokerage and subcontracting expenditure throughout the year was INR 63 crores. And, the professional and legal costs increased to INR 25 crores. With the rise in all the expenses, the total expenditure of the company for FY22 was INR 1215 crores.
With the spike in expenditure, the company also saw a rise in losses. The total losses of the company for FY22 were INR 645.2 crores.
According to the financial analysis, the company’s financial metrics ROCE and EBITDA margin were -48.10% and -102.84% respectively. It has been observed that Livspace has spent INR 2.13 to generate INR 1 as operating revenue during the year.
