HOW LIVSPACE IS READYING FOR AN IPO

With metros saturated, India's largest home interior startup is looking for growth in the heartland

- Samiksha Goel

A Nikita Vashistha, founder and managing partner of venture capital firm Arise Ventures, had a disappointing experience with Bengaluru-based home interior company Livspace when she hired it to design a rented-out home three or four years ago. While she initially admired the concept and the experience centers, the whole process and the final outcome left her disappointed. "Timelines weren't met, materials didn't match specifications, and the installation and after-sales service were terrible," recalled Vashistha. "Customer service was unresponsive, and I had to settle for what they provided."

Mumbai-based Kiran More, a sales professional working for a tech company, went through a similar experience this year, dealing with inferior parts, incorrect installation and delayed timelines. Vashistha and More are not alone. There is no dearth of complaints and reportage on the internet around the abysmal experiences Livspace's customers have had to endure.

Seated in a light blue shirt in a conference room at Livspace's Bengaluru office, chief operating officer (COO) Ramakant Sharma acknowledges the mountain of complaints. In his view, because interiors are a big-ticket investment for customers, when issues arise, the impact is felt strongly. But Sharma claims that despite everything, over 90% of customers report a satisfactory experience. Mint has not been able to verify the veracity of that claim.

While Livspace has always made headlines for consumer complaints, its latest challenge goes beyond the consumer experience. The company's revenue growth has slowed. On a positive note, it managed to cut losses substantially (see chart).