How Does Livspace Make Money? Business Model Explained

Livspace business model explained

In the realm of home interiors and design, a quiet revolution has been underway, led by a company that has dared to dream big, to redefine the very essence of how we conceive and create the spaces we call home: LIVSPACE. Livspace has not only revolutionized the interior design and home renovation industry but also masterfully crafted a business model that generates revenue in innovative and captivating ways. In this in-depth exploration, we unveil the secrets behind Livspace’s business model and how does it make money?

Livspace journey begins with the recognition of a glaring gap in the market- homeowners longing for exceptional interior design services without the hassle of traditional methods.

Livspace business model explained

Livspace Company Overview

It is an online platform that connects homeowners with a network of talented interior designers, skilled contractors, and curated home décor and furnishing products. It was conceived with a visionary purpose – to democratize good design and make it accessible to all.

Traditional methods were often cumbersome, expensive, and disconnected from the desires of homeowners. Livspace emerged as a solution, offering a seamless, tech-driven platform that connects homeowners with skilled designers, contractors, and curated home décor products. 

Name of the CompanyLivspace
Founders Anuj Srivastava (Co-founder & CEO) & Ramakant Sharma (Co-founder & COO)
Founded in 2014
Headquartered inBengaluru, Karnataka
Sector served inE-commerce 
Co-founded byShagufta Anurag
Areas served in India, Singapore, and Saudi Arabia
Valuation (2022)$957 million
Funding (2022)$184 million
Revenue (2022)$75.4 million
An overview of Livspace

The company journey begins with a deep understanding of each homeowner’s tastes, preferences, and lifestyle. It quickly gained recognition in the interior design and home improvement due to its innovative approach to connecting homeowners with interior designers, contractors, and a wide range of home décor products. Livspace achieved the status of Unicorn company by raising $180 million in February 2022.

Livspace founders Anuj Srivastava & Ramakant Sharma
Livspace founders Anuj Srivastava & Ramakant Sharma

Here are some key facets that make Livspace standout

An Extensive Catalog – Livspace offers access to an extensive catalog of home décor and furnishing products curated by experts. From chic furniture pieces and statement lighting fixtures to functional kitchen appliances and artistic wall art, Livspace ensures that every design element is at your fingertips. It’s a world of possibilities, where your design dreams find a home. 

A Network of Design Experts: Craftsmanship Meets Creativity – Livspace boasts a talented network of interior designers and professionals who bring their expertise to your project. Their insights and design ability ensure that your dream home is not just visually stunning but also practical and functional. It’s the bond between craftsmanship with creativity. 

Cutting-Edge Technology: Imagination in 3D –  Livspace harnesses the power of technology to elevate the design experience. With its proprietary 3D design platform, homeowners can step into their dream spaces virtually, seeing their vision come to life with breathtaking clarity. It’s a tool that turns imagination into reality.

End-to-End Services – Livspace offers end-to-end interior design and renovation services. From concept and design to project execution and final delivery, Livspace takes care of every step of the process, providing a hassle-free experience for clients.

Livspace Business Model

Livspace works on a simple business model that provides a platform that pairs homeowners directly to skilled designers and vendors. In February 2022, Livspace announced its arrival into the B2B (Business-to-Business) sector with the launch of “Livspace for Business.” Livspace earns revenue through charging a commission each time on the sale of their products. 

Here are some key points of Livspace business model

Project Execution: From Concept to Reality

Design concepts are mesmerizing, but Livspace takes it a step further. The company doesn’t just create beautiful designs; it takes charge of the entire project execution. This includes hiring contractors, overseeing construction, and managing the renovation process from start to finish. For these comprehensive project management services, Livspace earns a commission based on the total project cost. This approach ensures that Livspace remains deeply involved in the entire renovation journey, not only in the design phase but in bringing those designs to life. 

The Foundation of Personalized Design

At the core of Livspace’s business model lies an unwavering commitment to personalization. It all begins with a homeowner’s dream. When a client embarks on their design journey with Livspace, they are introduced to a whole world of possibilities. Expert interior designers are assigned to meticulously understand the client’s preferences, lifestyle, and vision.

Livspace home décor interior design

Sustainability Focus

Livspace places a strong emphasis on sustainability, promoting eco-friendly design practices and the use of sustainable materials. This commitment to environmental stewardship resonates with clients who prioritize eco-conscious design. 

Subscription Service

Livspace understands that each homeowner is unique, with distinctive needs and preferences. To cater to a diverse client base, the company offers subscription-based services, such as its “Essential” and “Signature” packages. Subscribers gain access to exclusive design services, product discounts, and priority project scheduling. In return, they pay a recurring fee. These subscriptions not only foster customer loyalty but also provide Livspace with a steady, predictable stream of income. 

Funding and Expansion

Livspace has attracted significant investments, enabling it to expand its operations and reach new markets. This funding demonstrates confidence in the business model’s potential for growth and scalability. 

Virtual Reality (VR) Technology

Livspace utilizes cutting-edge VR technology to allow customers to visualize their prospective designs in a virtual environment. This immersive experience helps customers make informed decisions and reduces the risk of design misalignments. 

Note: We do have a detailed write-up on the design of Cloud Kitchen Business Model.  Do visit it for more information!

How does Livspace earn money?

Livspace charges a commission on every transaction, sale of their product, that helps them to generate revenue for the company. Also works on a service based model. 

Here are some of the key ways through which Livspace earns revenue-

Design Consultation Fees – When homeowners embark on their journey with Livspace, they are connected with experienced interior designers. Livspace charges design consultation fees for these services, which is the first revenue stream. This fee allows homeowners to tap into the expertise of professional designers who can turn their vision into reality. 

Premium and Customized Services – For homeowners seeking a more personalized and luxurious touch, Livspace offers premium services. This includes tailored design solutions and access to exclusive décor collections. These premium services come at a higher price point, contributing to Livspace revenue.

Livspace designs

Vendor Collaborations – Livspace collaborates with a network of home décor vendors and professionals. These collaborations often involve mutual marketing efforts and partnerships. Livspace can earn additional income through these collaborations, whether it’s through referral fees or promotional arrangements. 

Brand Alliances and Advertising – Livspace’s strong brand presence in the interior design industry can lead to brand alliances and advertising opportunities. Partnerships with other companies in the home décor and renovation space can generate additional revenue. 

Product Sales – Livspace offers an extensive range of curated home décor products, from furniture to accessories. The platform earns a commission on each product sold through its website. This commission-based approach ensures that Livspace benefits from the sales generated on its platform.

Continual Growth and Expansion – As Livspace expands its reach into new markets and enhances its service offerings, it opens up new revenue streams. This includes catering to a wider audience and exploring untapped markets, ensuring that the company’s growth potential remains robust.

Marketing Strategies of Livspace

Livspace’s marketing strategies are as innovative as their design solutions. Let’s dive into the artistry of Livspace’s marketing and discover how it crafts its success story

Some of its marketing strategies are

Digital Dominance – In the age of the internet, Livspace knows where its audience resides- online. From social media platforms to search engines, Livspace has a strong digital presence. They leverage SEO techniques to ensure their website appears prominently when people search for interior design solutions. This digital dominance extends to content marketing, where Livspace creates engaging articles, videos, and design inspiration that resonate with their audience.

User-Generated Content –  Happy customers are Livspace’s best brand ambassadors. They encourage users to share their experiences and design transformations on social media using branded hashtags. This user-generated content serves as authentic endorsements and social proof, enticing others to explore Livspace’s services. 

Advertisements – Livspace has certainly onboarded many celebrities for their marketing campaign. Recently they reached out to famous personalities like Anushka Sharma and Virat Kohli for their brand endorsements. These commercials helped them to reach masses and to become more popular among the public.

Livspace celebrity brand endorsement
Livspace celebrity endorsement

Localized Marketing – Livspace understands that design preferences can vary regionally. They tailor their marketing strategies to cater to local tastes and trends. Their localized approach resonates with customers and fosters a sense of personalization. 

Exceptional Customer Service – Exceptional customer service is a core part of Livspace’s marketing. Word-of-mouth recommendations from satisfied customers are invaluable. Livspace prioritizes customer satisfaction and encourages referrals, turning every satisfied customer into a brand advocate.   


Livspace’s unique business model is a well-crafted combination of design expertise, product sales, project execution, technology solutions and more to it. By offering end-to-end interior design and renovation services, Livspace caters to the diverse needs of homeowners while generating multiple revenue streams. This multifaceted approach has not only helped Livspace become a leader in the industry but has also revolutionized the way people approach home improvement projects. As the company continues to innovate and expand its offerings, its revenue streams are likely to grow, solidifying its position as a key player in the home interior design and renovation market.

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Published By: Aashita Singh
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