Omni-channel home interiors and renovation platform Livspace announced on Monday a joint venture with Alsulaiman Group (ASG) eyeing expansion in the Middle East region. The company would be investing around $50 million into the partnership.
Alsulaiman Group is also the operating partner of Swedish home furnishing retailer IKEA in the region.
“We will be operating as Livspace in the region, in partnership with ASG. It’s a 50:50 partnership wherein both Livspace and ASG have invested about USD 50 million.
We are launching in KSA initially and will be looking to capitalise the massive opportunity in the home interiors and renovation segment in the Middle East and North Africa (MENA) region in the next 24 months,” Livspace founder and CEO Anuj Srivastava told PTI.
Several new employees will also be hired by the company in the design and home improvement department, making sure the joint venture is fully operational by the first half of 2022.
Srivastava said Saudi Arabia’s rapidly growing real estate market, especially the residential segment owing to Saudi Arabia’s Vision 2030 initiatives, presents significant opportunities.
“It is estimated to be a USD 15 billion market opportunity. Saudi Arabia’s Vision 2030 initiatives are sparking growth in home ownership and a wider array of residential formats – villas to high-rise apartment living – which underlines the need for quality home interior design and execution,” he explained.
Livspace delivers designs, execution, renovation, and supply of materials, and fit-out elements for bedrooms, living rooms, bathrooms and kitchens. The company possesses investments from firms like Kharis Capital, Bessemer Ventures and Nicholas Cator’s Venturi Partners and brings homeowners, design professionals, vendors and brands together on a single tech-led marketplace.
The interior company is also focusing on new mobile applications, AI, ML retail technology and visualisation solutions for the home improvement industry.
“Livspace will rapidly continue to scale its business model across multiple regions and new markets across the globe starting with the APAC geography. Given our technology prowess, deep understanding of the supply fundamentals and the ready launch and scale template, we today dominate the market in the high growth India and Singapore markets. Our platform enables us to explore JV models to quickly expand our services in both new and existing markets,” said Srivastava.
“This partnership with Livspace will allow us to expand the scope of the customer experience from the beginning of the design of the home to the end of implementation, in an innovative and unique experience to turn the dreams of homeowners into reality. The companies of Alsulaiman Group, IKEA, Flow, Ehteraf, Salasa and other emerging investments, will continue to grow as an integrated ecosystem to enhance customers’ lives through better experiences whether they access to our products online or through stores,” said Saud Alsulaiman, Alsulaiman Group CEO.
Livspace is looking to expand across 80 new cities globally starting with the APAC geography over the next 18-24 months.