Livspace’s growing pains
The home interiors firm has investor interest and strong growth, but as it scales, it faces challenges on service quality and complaints from some customers and vendors.
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Editor's note: Livspace, like most other startups, has had a frightening, tiring and then exciting 18 months. The Bengaluru-based interior design startup was on a high before the pandemic hit. Revenue from operations for the fiscal year ended 31 March 2020 came to Rs 394.3 crore, up more than 5.2x from Rs 75.6 crore the previous year. It had just closed a $60 million funding round in January 2020. But the initial six months or so after the pandemic hit India saw business tank—nobody was thinking of home renovation, even setting aside the lockdowns—and the company laid off more than 400 employees. Once the country started opening up again, and despite a second wave of the pandemic early this year, sales have been booming. The bursting of pent-up demand, a buyer’s market for residential real estate and people just plain getting comfortable with doing many more things entirely online or virtually saw a rebound for Livspace, one of the larger real estate tech startups in India. It raised $90 million in fresh equity capital in September last year, followed by $30 million …
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