New Delhi-based home interior start-up Livspace is in talks to acquire a majority stake in its competition HomeLane. A few sources, aware of the development, told Entrackr.
“The talks have been going on for several weeks and the terms of the deal are being finalised,” the first source, requesting anonymity, told Entrackr.
“The deal will largely consist of stock with some cash component,” the second source added.
According to the Entrackr report, if Livspace finally acquires HomeLane, then the combined entity will be the largest home and interior and design platform in the phygital (physical+ digital) arena.
Livspace and HomeLane both help their customers to furnish and install fixtures in their apartments.
However, both companies did not comment on the prospective development. Livspace denied sharing their opinion and HomeLane did not answer Entrackr’s queries.
Livspace acquired DezignUp, Dwll. in and YoFloor in 2015. The company recently set aside $100 million for strategic acquisitions.
In the financial year (FY) 2022, Livspace reported Rs 570 crore in revenue. It also registered a loss of Rs 646 crore. On the other hand, HomeLane also posted a revenue of Rs 426 crore and a Rs 153 crore loss in the same period of time.
Livspace raised $180 million in its Series F funding round, last year and turned a unicorn. HomeLane’s last fundraising round came in September 2021, where it raised $50 million at a valuation of $250 million.
Accel holds the largest stake in HomeLane ( 17.4 per cent) following Sequoia Capital (11.5 per cent) and IIFL (10.8 per cent).