Home and interior platform Livespace might raise $20–25 million from KKR, a global investment and private equity firm. The amount will be raised in an internal round, as per a report by MoneyControl. The company has, however, denied the talks and called them mere speculations.
In 2022, Livespace raised $180 million from several investors, including Jungle Ventures, Venturi Partners, Peugeot Investments, and KKR. It was then valued at $1.2 billion, according to MoneyControl. However, now the valuation has decreased to $700 million, as per the report.
While the round is taking time to close, the company intends to use the money for business purposes. As per MoneyControl, “Livspace is burning around $4 million each month, so it will likely use the funds to extend its cash runway. The company, however, feels that the valuation being offered is pretty low, because of which the deal is stuck.”
A spokesperson for the company told MoneyControl, “This is based on mere speculation, and we dismiss these assertions. Our growth has been unparalleled in the segment, and we are very well funded to support our growth plans.”
The spokesperson further said that they have a strong balance sheet with over $100 million on it. The spokesperson further highlighted that they do not intend to raise any capital during this time as their India business has been profitable for the last two quarters.
Similarly, in an interview with PTI, the company said that, "its India business has been generating positive cash flow from the last two quarters on the back of overall revenue growth, which is estimated to have risen around 30 per cent last fiscal year."
