08 April 2024 – Moneycontrol was informed by persons with knowledge of the proceedings that Livspace, the home and interior platform, is in discussions to raise $20–25 million from private equity firm KKR in an internal round.
Livspace was recently valued at $1.2 billion. The company secured $180 million in February 2022 from KKR and other investors. However, according to reports, it is now valued at around $700 million amid the continuing discussions. A firm that obtains money at a lower value than its prior fundraising is said to be in a “down round.” The funding round for Livspace is another instance of entrepreneurs accepting reality.
Letstransport, Udaan, Rupeek, and Byju are just a few of the firms that have either completed or are in the process of raising capital via a down round. Although it will take longer to finish the deal, Livspace intends to utilise the additional capital for regular business operations.
Conclusion
The business has refuted the discussions. “This is only conjecture, and we reject these claims. We have had the fastest growth in the category, and our expansion plans are well funded.