1911 - LVSP Delhi NCR Market Study PDF

Livspace Delhi NCR market study
November 2019
Overall workplan - revised
Week 1 2 3 4 5 6 7 8 9 10 11 12
9 -13 16 – 20 23 – 27 30 – 4 7 – 11 14 – 18 21 – 25 28 – 1 11 – 15 18 – 22 25 – 29
Days 4 – 8 Nov
Sept Sept Sept Oct Oct Oct Oct Nov Nov Nov Nov
Follow up
research on
Macroeconomic overview
Phase II - Supply and services study for Mumbai market

TAM / SAM,
demand, Articula
TAM / SAM and
supply, tion of
value prop
services, Follow up final
Articulation of finding
Inventory overview inventory Articulation of research on
Articulation findings, value s with
addressing key final findings TAM / SAM,
of findings, prop value
questions with value demand,
value prop definition, props
props and unit inventory
definition, demand, and and
economics of addressing
demand, good sense on unit
value props key
supply TAM / SAM econom
questions
overview, ics of
Demand overview and good Value prop unit
value
sense on economics
props
TAM / SAM
Macroeconomic
Inventory overview
Supply overview overview
Value prop
TAM / SAM and unit
value prop economics
Demand overview
Services overview
Delhi NCR Mumbai
Update
over • NCR – Macro / • NCR – Demand / • NCR – Prefinal • NCR – Integrated • MUM – Demand and • MUM – TAM SAM • Integrated
Inventory with early supply with answer integrated answer answer TAM SAM update + Value prop + Mumbai
meeting
findings on demand / on TAM except business case • MUM – Demand final on demand answer
supply + entry models update
• MUM – Inventory +
macro We are here.
Note: For Delhi NCR – we will treat Gurgaon / Noida as suburbs within city and give an integrated NCR
Completed In-progress | 2
level answer
Key questions in scope (1/2)
Workstream Key questions
• Macro overview of city from home improvement & real estate point of view
• Overview of city and comparison with other key cities for real estate parameters
Macroeconomic
• # households across income bands, type of profession, other key characteristics
overview
• Cultural overview of city from renovation behaviour
• End to end understanding of new and existing inventory – with trend in supply of different types of inventory
• Understanding of project types and spends associated with them

• Different types of projects commissioned by residents; Role if IDs and design
• Pricing and BoQ breakups by project and house types and range
• Finding inventory by property segments, price, type & size of house etc.
Inventory • Definition of property segments (e.g. townhouse, condominium and detached property) / TG
overview • Understanding of inventory by different cuts – size, price, type of house, profile of owners etc.
• Geographical coverage – Delhi, Gurgaon and Noida
• Key trends in the market
• Growth potential of the residential real estate
• Underlying trends (price movements, regulations, rental etc.)
• Mapping of different customer segments by behaviour & need

• What are the inherent segments? How large are they?
• What is their demographics? Why do they behave differently? How do they stack up to build the full market?
• Customer purchase journeys & personas for different segments
Demand
• Mapping purchase journey for different types of segments and go deep into purchase process / behaviour -
overview
need generation, discovery, prospecting, negotiation, closure, implementation, post implementation
• Build deep customer personas (habits, consumption patterns, lifestyle, home needs etc.)
• Find pain points, touch points, levers of differentiation, purchase criteria
• How to create wow in project implementation & post implementation
| 3
Key questions in scope (2/2)
Workstream Key questions
• Finding total addressable market (TAM)
• Finding serviceable addressable market (SAM) in the next 1-2 years
• Definition of property segments (e.g. townhouse, condominium and detached property) / TG, project types; Market size
by major product and service segments
• Understanding service providers by different project types and house types
TAM / SAM and
• Value prop for Livspace
value prop
• Which are the attractive segments for Livspace?
• How to target and attract segments (key channels and hooks); How to demonstrate value and convert (pricing,
services, add ons etc.); Products and services to be provided (incl. product level implications)
• Which value props are attractive for which segment and property type? (e.g. integrated, KnW, discovery and selection
platform)
• Understanding of supply side player types and their share in overall market
• High level view on product margins across supplier types; Scale of suppliers and margins across BoQ categories
Supply overview • Lead times, variety and availability of key products in Delhi market
• Supply chain-tie-ups with vendors (by products),
• Implications for Livspace for market entry for supply and delivery model
• Understanding of supply side player types and their share in overall market
• Studios, freelance IDs, contractors, large chains, DIYs, others
• Their value prop, customer feedback, and movement in share
• Mapping of 1-2 players in each category and 2-3 large chains
Services
• Mapping of 2-3 large studio chains / other partners (suppliers, importers, contracting firms, retail firms, online
overview
aggregators etc.)
• Lead gen, org setup, delivery capabilities, economics, scale etc.
• Willingness to partner and expectations of model / benefits
• Implications for Livspace for market entry for supply and delivery model
• Finding right mode of entry for Delhi market

• What are the characteristics of a market that is right for entry through different modes – direct entry, franchise,
Mode of entry acquisition etc.?
and unit • How does Delhi fare in those characteristics? Is it a right contender?
economics of • What would be the qualities hence of a good partner / target firm, if applicable?
value props: • How has franchisors done for other franchisees in Delhi market? What are the key learnings for mode of entry via
franchisee, if applicable?
• Who are the right franchise partners for entry into the market?
| 4
Approach
Mode of entry
Macroeconomic Inventory Demand Services
Supply overview and unit
overview overview overview overview
economics
• Secondary • Stakeholder • Interviews of • Primary: • Primary: • Excel
research discussions customers Interviews Interviews modelling
- Real estate (N=25) (N=120 IDIs) (IDIs) of (IDIs) of IDs & • Expert
reports, - Discussions - 15-20 per product Contractors discussions
published with property micro market suppliers (N=40) • Management
data from brokers / - Customer (N=30) - Focus on IDs workshops
govt. etc. consultants, interviews by - Focus on IDs / contractors and
• Data analysis subject different / contractors with good discussions
• Scraping of matter property with good mix of • Discussion
websites / experts etc. type, spend mix of different with
platforms • Data analysis on different property franchisors
- Real estate & research renovation, property types
listing portals • Secondary type of types • Management
and service research project • Management discussions
provider - Real estate conducted, discussions • Site visits /
listing portal reports, and • Site visits / market visits
published geography market visits
data from • Rapid survey
govt. etc. of another
~120
customers
• Data analysis
• Management
discussions
We will find demand and value prop insights at a micro-market level. Micro markets to consider:
• Delhi NCR: Delhi, Noida, Gurugram
• Mumbai: South Bombay, North Mumbai, Central Mumbai, West Mumbai and Navi Mumbai
| 5
Source of input: Inputs collected from 200+ conversations, including ~117
customers, 60 industry stakeholders and ~27 management personnel
Areas
surveyed: • Golf Course Extension
Contractors / IDs Suppliers Industry stakeholders
• New Friends • Sec 42 Gurgaon
providers
Service
colony, Delhi • Sec 60, Gurgaon ~18 retail ~20 brokers /
• Sec 65, Gurgaon ~22 contractor /
• Dwarka designer
furnishing property
• Sector 20, • Sector 26, Noida stores, consultants /
conversations
Noida individual, etc. associations etc.
Consumer survey (N=64) Gurgaon Delhi Noida
Management
discussions
Micro-market N covered ~11 ~9 ~7
conversations conversations conversations
Delhi 22
Flat: ~20 Builder floor: ~18 Villa: ~15
Gurgaon 23 New property New property New property
Sr. Budget Sr. Budget Sr. Budget
Scope of work Scope of work Scope of work
Noida 19 no. (INR L) no. (INR L) no. (INR L)
1 ~26 FHD 1 ~120 FHD 1 ~40 FHD
Deep customer engagements
Secondary sources
2 ~20 PHD 2 ~75 FHD 2 ~35 FHD
• Euromonitor
• Bloomerg 3 ~17 FHD 3 ~18 FHD 3 ~20 PHD
• Central and state government Reno property Reno property Reno property
websites
Sr. Budget Sr. Budget
• Company websites Scope of work Scope of work Sr. Budget
no. (INR L) no. (INR L) Scope of work
• CBRE no. (INR L)
• Knight Frank 1 ~15 FHD 1 ~105 FHD
1 ~36 FHD
• 99acres 2 ~12 FHD 2 ~10 PHD
• MagicBricks 2 ~30 PHD
• Bloomberg 3 ~12 PHD 3 ~10 PHD
• Times of India 3 ~8 FHD
4 ~6 PHD 4 ~8 PHD
• Money Control 4 ~9 FHD
5 ~6 PHD 5 ~8 FHD
• Anarock
• JLL 6 ~6 PHD 6 ~7 PHD 5 ~7 PHD
| 6
Executive summary
• Delhi NCR has ~4.3M housing units (excl. slums) as of Mar’19. ~70% houses are priced above INR
50L, 3% of overall houses are unsold as of Mar’19. 28% inventory is rented; 3BHK is the most
common type of housing configuration. Inventory has grown at a CAGR of 0.7% over 2014-18.
Average housing unit size is ~1250 sq. ft which is highest among cities (Mumbai, Bengaluru,
Singapore and Bangkok) where comparison is done
- Delhi NCR’s per capita GDP is US$ 4.8K, population is 23.6M, household size is 4.8 as of Mar’19. Delhi’s
population is ~20M; Gurgaon’s ~2M and Noida’s ~1M
Inventory and
- Delhi NCR has 4.3M houses. Delhi has 3.5M housing units out of which 0.05% are unsold; Gurgaon has
macroeconomic 0.5M houses out of which 11% are unsold; Noida has 0.3M houses out of which 23% are unsold
analysis
- 50% houses in Delhi NCR are priced below INR 1Cr. Noida has most affordable inventory; ~80% houses
are priced below INR 1 Cr in Noida
- Flats (37%) are the most prevalent house type closely followed by villas (34%) and builder floors (30%)
- Also, flats are the fastest growing segment at a CAGR of 1.3% vs 0.7% for 2014-18 for the overall market. In
terms of CAGR for 2014-18, Noida is the fastest growing market (5%) followed by Gurgaon (2%)
- 35K new housing units were sold in Delhi NCR. Price to income ratio for buying a house is 59 months which
is lower than Mumbai (74) but higher than Bengaluru (48)
• Delhi NCR (Delhi, Gurgaon, Noida and Greater Noida) home improvement market, for FY19, is worth
US$ 2.1B, out of which, 14% is new homes and remaining (86%) is renovations. Average order value
is US$ ~9K
- Delhi dominates the total market (75%, US$ 1.6B) followed by Gurgaon (13%, US$ 272M) and Noida (12%,
US$ 250M)
- Delhi market is further divided in 5 micro markets; South (39%, US$ 625M), North (33%, US$ 526M), West
(13%, US$ 207M), East (10%, US$ 154M) and Central (5%, US$ 86M)
TAM / SAM - Properties are classified in 3 types – flats, builder floor apartments and villas. Villas (42%) take up the
highest share of the TAM followed by flats (34%) and builder floors (24%)
- We have used a variety of top down (including triangulation with USA, Australia and Singapore home
renovation market) and bottom up approaches to validate the current market size (across different micro
markets and including a micro market level census data and assumptions derived from IDIs based bottom
up approach)
- The underlying SAM for Delhi NCR market for FY19 is US$ 1.3B (~62% of TAM). Average order value
for SAM is US$ ~14K
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Executive summary
Demand, • We observe that renovation behavior in Delhi NCR market is driven by profession (service / business),
personas geographic location (Delhi, Gurgaon and Noida), income, house type (flat, builder floor and villa) and use
and survey case (new / reno)
• We have identified 9 personas in the Delhi NCR market – high end as well as mid income corporate
employees / professionals (Gurgaon and Noida behave similarly; Delhi behaves differently for these
personas), modern business owners / traditional business owners, public sector employees, super affluent
and investors
- High end corporates / professionals (in Gurgaon and Noida) are independent working couples (HHI = 50-200L)
typically living in new flats and look for full-stack integrated interior design solutions; whereas the same persona in
Delhi market might go with sub-contractors since they live in joint family and a project manager is available at home to
manage the project
- Mid income corporates / professionals (in Gurgaon and Noida) are independent working couples (HHI = 15-50L)
typically living in new flats and look for turnkey solutions for hassle-free execution but save on exorbitant design fees
levied by full-stack ID firms
- Modern business owners, across micro-markets, typically look to hire turnkey contractors with independent ID /
architect to get flexibility to lead design process
- Traditional business owners, across micro-markets, are extremely price sensitive and look to hire sub-contractors to
save project management costs
- Public sector employees, across micro-markets, look for hassle-free execution solutions and typically go with
turnkey contractors offering minimal designs as they look for functional houses
- Super affluent customers look for integrated renovation solutions and typically hire specialized sub-contractors / full-
stack interior design firms
- Based on rental yield in the area, investors generally look for modest designs but sturdy products and go with turnkey
contractor / sub-contractors
• Delhi is dominated by mid-income corporates / professionals (27% of SAM units) followed by traditional
business owners (23% of SAM units). Gurgaon is dominated by investors (48%) followed by mid-income
corporates / professionals (20%); Noida is also dominated by investors (46%) followed by mid-income
corporates / professionals (30%)
• Of the surveyed respondents, 33% got a quote from a service provider found online. 14% went ahead with a
service provider found online
• Market is currently dominated by sub-contractors (~42%) and turnkey contractors (~42%); ID penetration is
| 8
highest in Gurgaon (11%)
Executive summary
• NPS for the market is 11%
- By geo: Delhi’s NPS is 15%, Gurgaon’s 0% and Noida’s 20%
- By persona: High end corporates / professionals’ NPS is 18%, mid-income corporates / professionals’ NPS is -9%
- By service provider: Full stack ID has highest NPS (40%) and sub-contractors have lowest (7%)
• Most customers chose value offering (25%) for future FHD project closely followed by integrated offering
(24%)
- By geo: Most customers chose value offering in Delhi (32%) and integrated offering in Gurgaon (26%)
- By persona: High end corporates / professionals will go ahead with integrated offering (55%), mid-income corporates /
professionals’ preferred service provider is turnkey contractor (35%), super affluent customers will go ahead with
premium offering (88%)
Value props • We have suggested five value props for Delhi NCR market – integrated, value and premium offerings,
builder partnerships and KnW++ franchisee stores. US$ 1.2B market is serviceable with the proposed
offerings
- Integrated offering (US$ 317M for Delhi NCR market) is about one stop solution for home interiors (which is the
core offering of Livspace) which is majorly targeted at high end and mid income corporates / professionals and
modern business owners. For integrated offering, Delhi (US$ 221M) is the biggest market followed by Gurgaon (US$
54M) and Noida (US$ 41M). The offering can operate at an EBITDA of ~22%
- Value offering (US$ 304M for Delhi NCR market) is about no-frills basic offering with limited customization options
which is majorly targeted at investors, mid-income professionals / employees, public sector employees and
traditional business owners. Delhi (US$ 187M) is the biggest market followed by Noida (US$ 82M) and Gurgaon
(US$ 35M)
- Franchise KnW++ stores (US$ 297M) is about productized offerings around kitchen, wardrobes, bathroom and
other room-based packages which can be fulfilled from a store. It is targeted at investors, public sector employees
and mid-income employees / professionals. Size of the opportunity for Delhi, Gurgaon and Noida is US$ 204M, US$
40M and US$ 53M respectively
- Premium offering (US$ 157M for Delhi NCR market) is about highly customised designs, dedicated project
manager, preferred sub-contractor (speciality sub-contractor) integrations and overall project management. Delhi
(US$ 130M) is the biggest market followed by Gurgaon (US$ 27M)
- Builder partnership is a partnership with builders who construct ~10-12 builder floor apartments per annum. It is a
commission-based model for selling pre-fitted KnW to the end client and upselling for FHD projects. Size of the
opportunity for Delhi and Gurgaon is US$ 113M and US$ 23M respectively
| 9
Executive summary
Supply and • Appliances market is branded (72%), followed by paint and lighting (~65%). Fitted and loose furniture have
services highest gross margin. There are 5 archetypes of project fulfillment – turnkey contractor led (19% market
overview share by volume), ID led (8%), Contractor + ID led (14%), self-led(41%) and fulfilled from retail (18%)
- Interior design firms are classified in four archetypes – freelancers, small ID company, medium ID company and large
ID company
- A mid-sized ID company has ~10-15 employees on payroll, does ~12-15 projects per annum and operates at an
EBITDA of 18-20%
- Contractor firms are classified in four archetypes – segment-based contractors, small contractors, medium sized
contractors and big contractor firms; a medium sized contractor firm operates at an EBITDA range of 14-16%
Key • To do better in the Delhi NCR market, there are a set of suggestions common for all micro markets and a
recommend set of suggestions specific to micro markets
ations - For the entire Delhi NCR market:
- Allocation of IDs: A policy of allocating different IDs in pre-sales and designing phase is recommended. Also, the incentives
of IDs should be aligned such that they complete the work on the allocated / ongoing clients before going on elongated
leaves. It is imperative to have a single SPOC of each phase during pre-sales, design and execution
- Customization and availability of SKUs for loose furniture should be improved. Customization (of size, dimensions, colour
and design) according to customer’s preferences and availability of all the SKUs from partners on Livspace’s platform will help
improve customer experience during designs and pre-sales phase
- Improving brand recall: advertisements in print media, inserts in newspapers, hoardings at strategic places, content
marketing and stalls / standees in key corporate hubs will aid the brand recall which is especially required for Delhi market but
also for Gurgaon and Noida for varying extent
- Competitive quotes: Prospective customers found quotes (especially services work) to be on a higher side. To win in the
Delhi market, the quotes should become competitive compared to “a local contractor”
- For the Noida and Gurgaon market:
- For Gurgaon market, integrated and premium offerings should be focused upon
- For Noida market, integrated and value offerings are most suitable
- A strong referral program should be enacted along with regular engagement with customers whose projects have already
been delivered to enhance brand association
- For the Delhi market:
- To grow in Delhi market, it is important to establish offline stores. Franchise KnW++ stores should be opened in key hubs to
aid selection process (majorly for mid-income corporates) and become part of the consideration set (for public sector
employees, traditional business owners and investors)
- Serving reno market: To serve reno market, the offering should be tweaked such that Livspace can work even when the | 10
owner resides in the same property as majority of the customers are not willing to move out when the work is ongoing
Agenda
Inventory & Demand

overview
TAM / SAM & GTM, growth

Value prop & survey
Services Supply
overview overview
| 11
Target market includes Delhi NCR with a total area of ~3.3K sq. km. and
population of ~23.6M
Target market has a total area of 3,253 sq. km. Target market has a population of 23.6M with
and a GDP per capita of US$ 4,800 20.2M in Delhi alone
Population in select regions in
target market (M)
Area Population GDP per capita • Approach:

3.3K sq. km 23.6M ~US$ 4.8K 20.2 - Population for Gurgaon (2018)
Central, 0.9 as per government data
quoted in national publication
East, 2.1
- Population for Noida (2018)
Map of Delhi NCR projected using CAGR of
West, 3.1 Census 2001-11 data (7.7%)
• Validation: Ratio of Gurgaon to
Noida’s population as per Census
South, 6.0 2011 is 2:1 like the projected values
Central Delhi
N
NE
1 2.4
New E North, 8.2
1.1
Delhi 2.4 1.1
3 Delhi Gurgaon Noida
2 1 2 3
Area (sq.km) 1,484 1,258 511

Population
density 13.6 1.9 2.1
(K/sq.km)
households
Note: Delhi NCR includes Delhi, Gurgaon, Noida and Greater Noida 4,203 490 224 | 12
#, K
Source: Government data sources, Times of India, Praxis analysis
Delhi NCR is expected to remain 2nd biggest urban agglomeration globally;
working age population has increased; households are becoming smaller
Global standing of Age distribution of Household size Migration from different
Delhi-UA population distribution states of India
~160M ~200M ~19M ~23.6M ~19M ~23.6M ~19M ~8M

>=60
>=60 years, 5%
Mumbai, Mumbai, years,
12% 13% 9%
Sao Sao 35-59

Polo, Polo, year,
12% 12% 23% 35-59
year,
31%
Shangai,
13% Shangai,
14%
25-34
year,
New 18%
York, New
13% York, 25-34
12% year,
19%
Mexico Mexico 15-24
city, city, years,
13% 12% 21%
15-24
Delhi- years,
UA, 14% Delhi- 10-14 20%
UA, 17% year,
11%
5-9 10-14
years, year, 9%
Tokyo, 11% 5-9
23% Tokyo,
years,
19% 0-4 7%
0-4
years,
years,
10%
7%
2011 2025F 2011 2018P 2011 2018P 2011 2011
Note: UA: Urban agglomeration | 13

Source: Secondary research, Census data, Economic survey, Praxis analysis
India has the biggest average household size and the highest GDP
growth rate among comparable nations; it is not an indulgent society
India Thailand Brazil China
Population (M, 2018) 1,353 69 209 1,393
GDP per capita (US$ K, 2019) 2.2 7.6 9.2 10
GDP growth rate (%, 2019) 5.5 2.8 0.9 6.1
Organized retail penetration (%) 4 29 36 16
Profile
Average household size 4.9 3.1 3.3 3.1

No. of housing units (M, 2018) 251 22 58 433
Annual inflation rate (%, 2019) 7.3 1.1 3.3 2.8
Gini coefficient 0.48 0.44 0.47 0.5
Ease of doing business rank
77 27 109 46
(2018)
Indulgence 26 45 59 24
Long term orientation 32 51 44 87
Uncertainty avoidance 40 64 76 30
Individualism 48 20 38 20
Culture
Masculinity 34 56 49 66
Scheduling Flexible time Linear time Flexible time Flexible time
Trust Relationship based Relationship based Relationship based Relationship based
Sophisticated, Sophisticated, Sophisticated, Sophisticated,
Communication nuanced and nuanced and nuanced and nuanced and
layered layered layered layered
Average monthly home visits 8 -10 visits 3-5 visits NA NA
Note: Housing units exclude slums
| 14
Source: World Bank, Hofstede Insights, Praxis analysis Low High
Delhi NCR has a relatively bigger household size, and big housing unit
size which is ~2x of Bangkok
Mumbai Bangkok
Parameters Delhi (NCR) Bangalore Singapore
(MMR) (BMR)
Population (M, 2019) 23.6 23.1 15.2 5.6 11
Overview
GDP (US$ B, 2019) 125.3 109.8 76.8 375 177
GDP per capita (US$ K, 2019) 5.3 4.7 5.0 67 16
GDP growth rate of (%, 2018) 11.3 7.0 8.5 3.1 4.1
Area (sq. km.) 3,253 920 2,208 725 4,700
Urban average household size

4.8 4.4 3.5 3.3 (2018) 2.7 (2018)
(2011)
Avg. housing unit size (sq. ft.,

~1,250 ~830 ~1100 ~1000 ~600
2018)
Demographics
Working age population (%,

60 56 58 70 67
2018)
0-15 yrs 24 27 25 13 17
Age structure
15-65 yrs 69 67 65 77 72
(%, 2018)
>65 yrs 7 6 9 10 11
Pop. growth (%, 2011-2018) 3.1 1.5 3.6 0.8 1.2
Median age (years, 2011) 27 28 28 40 37 (2018)
Population density (K / km sq.

7.2 27 6.8 9.2 2.3
2018)
Note: Delhi NCR includes Delhi, Gurgaon, Noida and Greater Noida | 15
Source: Government data sources, Praxis analysis
There are 4 types of residential supply units in Delhi NCR; flats consist
of ~37% of the total
\
Flat Builder Floor Villa Farm House

• Multiple Independent units
• Single unit per floor • Single unit • 4-6BHK/units
on a floor
Property traits • 2-4 BHK/Units • 3-6 BHK/units • Landed property
• 2-4BHK/Units, medium or
• 3-4 floors • Landed property • High degree of open space
high-rise
Inventory (K, 2018) 1,601 (37%) 1,279 (29%) 1,459 (34%) 4 (0.1%) 4,340 (100%)
Price range (US$ K) 70-500 100–600 500-2,000 1.000-5,000
Total units sold, 2018 (K) 20 13 2 0.14
Typical floor size (sq. m) 150 180 500 1500
Typical number of rooms 2-4BHK 2-4BHK 3-6BHK 4-6BHK
Median Purchase 185 260 1,145 2,460

price (US$
K) Rental / year 4 5 23 37
Government built
Modular furniture ✖
Loose furniture ✖ ✖ ✖ ✖
New Décor and
✖ ✖ ✖ ✖
improvement
Services
• New affordable
• New construction dominant • New constructions coming
construction in Noida
in Gurgaon. up in Manesar, Noida
around Greater expressway • Located in Chattarpur,
Additional details • Builder floors are not extension with
• Premium property Sohna Road and Ghitorni
prominent in Noida due to comparatively lower
construction in periphery of
land leasehold property rates per sq.ft
Gurgaon
Frequency ✔ High ✔ Medium ✖ Low
Total housing inventory in Delhi NCR is ~4.3M; ~72% of overall inventory
is priced above INR 50L
Distribution of housing inventory by value of property (#, 2019)
Overall Gurgaon Delhi Noida

No. of
Units, K 4,340 3% 513 11% 3,515 0.05% 312 23%
0% 20% 0% 20% 0% 20% 0% 20%
Price, INR L
<50 28% <50 5% <50 30% <50 41%
50-100 21% 50-100 22% 50-100 20% 50-100 40%

Due to
100-150 12% 100-150 29%100-150 10% 100-150 8%
leasehold of
150-200 9% 150-200 16% 150-200 9% 150-200 9% land in Noida
builder floor is
200-300 8% 200-300 12% 200-300 8% 200-300 2% not prominent;
builder floors
300-500 8% 300-500 9% 300-500 8% 300-500 1% are majorly
>500 13% 7% >500 15% >500 0% rented in Noida
>500
Split by
House 37% 33% 30%0% 53% 15% 32%0% 30% 39% 31%0% 88% 5% 7%
Type
Flat Villa Builder Floor Farm House
Overall Gurgaon Delhi Noida
Price, 50- 100- 150- 200- 300- 50- 100- 150- 200- 300- 50- 100- 150- 200- 300- 50- 100- 150- 200- 300-
<50 >500 <50 >500 <50 >500 <50 >500
INR L 100 150 200 300 500 100 150 200 300 500 100 150 200 300 500 100 150 200 300 500
Flat 26% 26% 20% 16% 9% 3% 1% 7% 35% 31% 15% 7% 3% 2% 27% 19% 21% 19% 11% 4% 0% 39% 43% 7% 8% 2% 1% 0%
Villa 15% 17% 5% 4% 6% 15% 38% 2% 3% 4% 7% 10% 32% 43% 15% 18% 5% 4% 6% 14% 38% 48% 20% 7% 10% 5% 6% 5%
Builder Floor 45% 20% 12% 8% 9% 6% 1% 3% 7% 37% 22% 22% 7% 0% 51% 23% 8% 5% 7% 6% 1% 49% 11% 20% 15% 5% 0% 0%
Farm House 0% 0% 0% 0% 1% 2% 97% 0% 0% 0% 0% 67% 33% 0% 0% 0% 0% 0% 0% 2% 98% 0% 0% 0% 0% 0% 0% 0%
Total 28% 21% 12% 9% 8% 8% 13% 5% 22% 29% 16% 12% 9% 7% 30% 20% 10% 9% 8% 8% 15% 41% 40% 8% 9% 2% 1% 0%
Cumulative 28% 49% 61% 71% 79% 87%100% 5% 27% 56% 72% 84% 93%100% 30% 49% 60% 69% 76% 85%100% 41% 80% 88% 97% 99% 100% 100%
Note: Inventory in Delhi doesn’t include low income group and EWS category flats by DDA Unsold, %
| 17
Source: Magicbricks, Secondary research, Praxis analysis
Flats contribute 37% of the inventory; 3BHK is the most common
inventory type; ~28% of the inventory is rented
4,340K 4,340K 4,340K 4,340K 4,340K 4,340K
Rented , 4% 4+BHK, 5% Rented, 7%

Noida, 7% 8%
Owned , 3%
Rented , 6%
Gurgaon , 12% 3BHK, 14% 11%
Owned , 6% Builder Floor, 30%
Owned, 23%
Central Delhi, 3%
1-2BHK, 10% 11%
East Delhi, 9%
Rented, 18%
5+ BHK, 8% Rented, 5%
11%
West Delhi, 12%
8%
Villa, 34% 3-5 BHK, 19%
Owned, 28%
6%
South Delhi, 25%
<3 BHK, 7% <1 , 9%
4+ BHK, 4%
Owned, 63% >2, 9%
Rented, 16%
3 BHK, 19% 1.5-2, 11%

Flat, 37%
North Delhi, 32%
1-1.5, 11%
Owned, 21%
1-2 BHK, 14%
<1, 6%
Region Type of resident Type of houses No. of bedrooms Size of houses (K sq. ft) Type of resident
Note: Farmhouses are clubbed into villa

Source: 99acers, MagicBricks, Anarock, Praxis analysis
| 18
Inventory has grown at a CAGR of ~0.7% over last 5 years; flats are growing at a
fastest rate (1.3%); majority of new units are located in Noida & Gurgaon
Noida and Gurgaon together Flats account for ~37% of all Supply of new residential units
contribute to 96% of the new residential units in NCR expected to increase over 2018 -
property in NCR 19
Total housing units (K) Supply of new residential units

Total housing units by location (K)
by expected year of completion (K)
0.7 % 0.7 % 11 %
4,233 4,266 4,287 4,307 4,340 4,233 4,266 4,287 4,307 4,340
5%
256 269 277 286 312
467 486 497 506 513 0.4%

1,261 1,268 1,272 1,276 1,280
3.2%
2%
1,452 1,455 1,456 1,457 1,459 0.1%
69
3,510 3,512 3,513 3,514 3,515 59
53 56
34
1,520 1,544 1,559 1,573 1,601
0.04%
1.3%
2014 2015 2016 2017 2018 CAGR 2014 2015 2016 2017 2018
14-18 CAGR 2018 2019E2020P2021P2022P
14-18
Noida Gurgaon Delhi Builder Floor Villa Flat
Source: Census data, Anarock, ICICI real-estate report, Proptiger, Praxis analysis
| 19
Houses are relatively bigger, more affordable than Mumbai; new home
sales (~35K) in Delhi NCR is significantly lesser than Mumbai
Parameter Delhi NCR Mumbai Bangalore Singapore Bangkok
Total number of houses (K) 4,340 3,253 3,214 1,442 4,012
Average size of unit house (sq. ft.) ~1,250 ~830 ~1,100 ~1,000 ~600
Owned 72% 68% 55% 94% 82%
Type of residents
Rented 28% 32% 45% 6% 18%
Population below poverty line (%) 17 22 12 NA* 8.6
Flat 37 Flat 98 Flat 60 HDB 79 Condo 32
Type of residence (%) Villas 34 Villas 25 Condo 16 Townhouses 42

Housing
Villas 2
Builder Builder
30 15 Landed 5 Detached 26
Floor Floor
< INR 2.5M 90 HDB loan 90 < THB 10M 85
Loan to value ratio (%) INR 2.5M to 7.5M 80

Bank loan 75 > THB 10M 80
> INR 7.5M 75
Average age of property (years) ~36 ~30 NA 16.5 20.7

Ownership cycle of homes (years) ~45 ~45 ~45 ~45 ~33
Price to income ratio (months,
59 74 48 144 26
2018)
Supply
Average reno spend (US$ K, 2018) ~10 ~12 ~9 ~35 ~9

Housing loan interest rate (%) 8.05%-10.25% ~1.95% – 2.5% ~3.5% – 4.5%
New home sales (K, 2018) 35 79 43 33 97
House price increase (YoY, 2018) 4% -3% 2% 3% 5%
Note: Delhi NCR includes Delhi, Gurgaon, Noida and Greater Noida; There is no official poverty line in Singapore
Source: Government reports, UN data, UBS housing benchmarks, Data.gov.sg, Secondary research; Praxis analysis | 20
Agenda
Inventory & Demand

overview

Value prop & survey
Services Supply
overview overview
| 21
Basis behaviour and need for services, there are 6 use cases in Delhi
NCR market
Flat Builder floor Villa & farmhouses
1 3 5
Location • Mid-town, suburban, • Mid-town, prime • Sub-urban and
prime locations of city locations of city, etc. peripheral areas
Size (in • 0.8-3K • 1.5-4.5K • 2-6K

NEW
sq. ft.)
Household
• INR 10-100L • INR 30-200L • INR 40-500L
Income
Inventory • 18.6K • 6.8K • 1.9K
2 4 6
• Mid-town, suburban, • Mid-town, prime • Prime locations of city,
Location
prime locations of city locations of city, etc. sub-urban and
peripheral areas, etc.
Size (in
sq. ft.) • 1.2-3.5K • 1.8-4.5K • 2-6K
RENO
Household
Income • INR 10-75L • INR 20-150L • INR 40-400L
Inventory
• 51K • 45K • 58K
Reason of • Wear and tear, • Wear and tear, ageing

renovation changing needs as • Wear and tear, birth of family, upcoming
kids grow up kids, marriage marriage
| 22
Source: Primary conversations, Praxis analysis
New inventory: Most builder led projects come with services, partial
kitchen and wardrobe done; new flats are mostly bare shell
Villa
Flat Builder floor apartment
Township Self
Sem- Fully Semi- Fully Semi- Fully
Bare shell Bare shell Bare shell
furnished furnished furnished furnished furnished furnished
# units (2018, K) 22 5 2 0.6 2 0.5 0.82 0.07 0.06 0.95
% share, Delhi 60% 30% 10% 25% 60% 15% 70% 20% 10%
% share, Gurgaon 60% 30% 10% 15% 70% 15% 80% 10% 10% 50%*
% share Noida 85% 15% 5% 15% 70% 15% 90% 5% 5%
Kitchen
Wardrobe
TV cabinet
Product
Loose furniture
Mattress
Appliances
Curtains & carpets
Décor items
Bathroom fittings
Flooring
False ceiling
Services
Wallpaper
Paint & Polish
Windows / doors /
glass
Electrical
Note: *50% self led projects is part of total villas constructed; remaining 50% is part of townships. | 23
Source: Primary conversations, Secondary research, Praxis analysis No Sometimes Always
New inventory: Properties priced INR >1 Cr have good spend (INR >10L)
and willingness to engage a single stop solution provider (1/2)
Type of house Flat Builder floor apartment Villa
Value (INR L) <50 50-150 >=150 <100 100-200 >=200 <200 200-500 >=500
# conversations done 10 8 7
# (K) 10 15 4 1 2 0.8 1 0.4 0.3

New
% 35 52 13 29 50 21 64 22 14
supply,
2018 % constructed by
100% 100% 50-60%
builder
Typical annual HH income

10-25 25-50 50-70 15-40 30-70 70-120 12-40 40-80 >80
(INR L)
• (100-200L): Mid scale business owners of • (<200L): Owners of small-scale businesses for
electronics retail shop, travel-tech services e.g., silver wholesaling, small trading units, etc.
• Corporate / service workers – managerial startup, etc. • (>=500L):
Profile of the residents positions in IT, finance, human resources, • (>=200L): - Owners of large-scale businesses like air
marketing, etc. - Owners of large-scale businesses like, real cargo handling, real estate development,
estate development, etc. etc.
- Retired senior government professionals - Retired senior government professionals
Avg. size (sq. ft.) 0.6-1.2K 0.8-2K 1.5-3.5K 0.8-1.2K 1.2-2.5K 2.5-4.5K 0.8-2K 1.5-4K 7-8.5K
• (50-150L): • Township:
• Modular cabinets in kitchen with granite /
- Semi-modular cabinets in kitchen with - Modular cabinets in kitchen with granite /
marble counter, CP fittings, steel sink
granite / marble counter, CP fittings, steel marble counter, CP fittings, steel sink
• Tiling, flooring, painted walls and ceiling
sink - Tiling, flooring, painted walls and ceiling
• Polished hardwood doors, UPVC / aluminum
- Tiling, flooring, painted walls and ceiling - Polished hardwood doors, UPVC /
windows
- Polished hardwood doors, UPVC / aluminum windows
• Toilet and shower fittings
aluminum windows - Toilet and shower fittings
Pre-installed in the inventory • Wiring, power points, modular switches,
- Toilet and shower fittings - Wiring, power points, modular switches,
telephone and TV points
- Wiring, power points, modular switches, telephone and TV points
• False ceiling
telephone and TV points - False ceiling
• (>1,000L): Ultra premium builder floor sold
• (>=150L):
bare shell with option to get furnishings from
- Superior modular fittings in kitchen
builder, due to high demand for exclusivity in • Self-constructed: No pre-installed items
- Appliances like fans, air conditioners,
designs
chimney, geyser, microwave, etc.
• Fitted wardrobes and TV storage units

• Modifications to existing modular kitchen setup
• (For self-constructed villas)
Scope of work • Loose furniture, furnishings and décor, appliances
- Full stack
• Partial rework of tiling, flooring, plumbing, electrical, etc.
• Addition of false ceiling, wood paneling, fancy lighting, paint, etc.
Township: 50-
Township: 15- Township: 20-
Typical spend per renovation 100
3-5 5-15 15-30 6-10 10-20 20-50 20 50
(INR L)* Self – 75 -
Self – 20 - 30 Self – 30 - 60
125
TAM (US$ M) Segmental 31 133 75 4 17 12 10 13 8

| 24
Source: Primary conversations, Praxis analysis Note: *Spend taken on typical FHD projects
New inventory: Properties priced INR >1 Cr have good spend (INR >10L)
and willingness to engage a single stop solution provider (2/2)
Value (INR L) <50 50-150 >=150 <100 100-200 >=200 <200 200-500 >=500
• Offline: Friends and family, local service

• Online: Discovery through online platforms
providers
Channel of service provider like Urban Clap, social media • Offline: Friends and family, local service
• Online: Discovery through online platforms
selection advertisements providers, referrals from material providers
like Instagram, Houzz, etc. in the >=INR
• Offline: Friends, family, neighbors
200 L value segment
• Referral feedback and previous track

• Service provider open-minded and non-
record • Sophistication of designs and depth of
Major factors influencing the pushy
• Sophistication of designs and depth of customization
decision for selecting • Referral feedback and previous track record
customization • Referral feedback and previous track
service provider • Room for customer to collaborate on design,
• (>=200): Full-stack solutions with project record
and material selection
management capabilities
• Independent sub-contractors (100-200): • Independent sub-contractors (<200):

Services by contractors + unorganized Services by contractors + unorganized
• Contractor / ID-led: Design + in-house buying led primarily by customers buying led primarily by customers
Present service delivery
manufacturing capabilities + unorganized • Contractor / ID-led (>=200): Design + in- • Contractor / ID-led (>=500): Design + in-
model
buying led primarily by customers house manufacturing capabilities + house manufacturing capabilities +
unorganized buying led primarily by unorganized buying led primarily by
customers customers
Cash payment preference ◑ ◔ ◔ ◕ ◕ ◕ ◕ ◕ ◕

Service provider NPS 0% -17% 33%
Use of ID
• Cost, time overruns and multiple follow-ups

• Inability of contractors to give meaningful • Lack of willingness by ID to incorporate
required
Points design inputs to customers design inputs from customer
• Inability of contractors to give meaningful
Major pain • Lack of professionalism of workers on site • Lack of cost transparency at the beginning
points design inputs to customers
Level of pain
point ◑ ◕ ◕ ◑ ◕ ◕ ◑ ◑ ◕
● ● ● ● ● ● ● ● ●
Emerging
serviceabil Segmental
ity
SAM (US$
Segmental 0 131 73 2 16 11 2 4 0.2
M)
% of TAM Segmental 0% 99% 97% 65% 94% 90% 15% 28% 3%

Note: All properties below 50L are not serviceable, Villa less than 100L and above 500L are only No Sometimes Mostly
○◔ ◑ ◕ ● ● Serviceable ● ● Not
serviceable for KnW offering, Flat and Builder floor above 300L are only serviceable for KnW offering
Low High Serviceable with customer | 25
Source: Primary conversations, Praxis analysis behavioural change serviceable
Overall pain points for new customers: Cost and timeline overruns,
quality of workmanship, and stakeholder management
Pain level by property type Pain level by micro-market
Criteria Livspace
Flat Builder floor Villa Delhi Gurgaon Noida
“The founders of the ID company
Discovery
Centralized platform
selection
were personally involved at the

&
Reliable / updated reviews

beginning but when I was following
Limited available options up on the time delays or the budget
Competitive pricing getting exceeded, they were hardly
reachable.”
Pricing
Transparent cost breakup

- Customer, Builder floor
Reasonable payment schedule apartment, Gurgaon
Cost overruns
Qualit
Quality of workmanship
y
Use of quality materials

Track
recor
Volume / variety of past work

d
Reputation / customer advocacy

“Overall, I wasn’t very satisfied with
Reasonable timeline proposed the quality of work done by the ID.
It’s only been two months since we
Execution
Adherence to timelines
moved in this brand-new flats and
Flexibility with regards to client needs the shutters of the wardrobes are
Ad-hoc material demands already coming off.”
- Customer, Flat, Noida
Lack of material transparency
eness
onsiv
Disciplined follow-ups
Resp
Poor after-sales service
Lack of useful design inputs

Relationship
building
Quality of communication
Lack of professionalism “My father does not trust the quality

of materials used by contractors.
Push to buy materials from specific
vendors
Given it’s a huge investment, we
prefer to get things like wardrobes,
Permissions of local authorities / sofa, etc. inside the house and rest
existing residents
Lifestyle
of the material purchases we make

Difficulty in residing with ongoing ourselves.”
renovation work - Customer, Villa, Delhi
Stakeholder management
Warra
Lack of warranty given

nty
Lack of clarity on warranty usage Level of pain faced

High
|
Low26
Source: Consumer survey (N=101), Primary interviews, Praxis analysis
Reno inventory: Flats and builder floors priced INR >1 Cr have good spend
(INR >10L) and willingness to engage a single stop solution provider (1/2)
Value (INR L) <50 50-150 >=150 <100 100-200 >=200 <200 200-500 >=500
# conversations done 10 10 8
# total units (K) 18 31 20 29 20 10 38 19 12

Inventory
% 26 45 29 49 34 17 56 27 17
Frequency of reno
cycle in 15 years
1 1 1
# addressable units (K) 70 59 69
Annual HH income
10-25 25-50 50-70 15-25 30-70 70-120 12-40 40-80 >80
(INR L)
• Mid and large size business owners (for • Small-mid sized traditional business
• Mid-income professionals like teachers,
e.g., mid-sized factories, exports owners like small spare parts wholesale
lawyers, etc.
businesses, etc.) units, mid-sized brokerage business,
Profile of the residents • Small business owners (for e.g., trading
• Current and ex-government employees etc.
businesses, beauty parlor owners, etc.)
• Modern, independent corporate • Large business owners
• Current and ex-government employees
employees • Senior government officials
Avg. size (sq. ft.) 0.8-1.5K 1.2-3K 1.8-3.5K 1-1.8K 1.5-3K 3-5K 0.8-2K 1.5-4K 4-8K
• Minor civil including partial • Minor civil including partial • Minot civil including partial
reconstruction of internal walls, balcony reconstruction of internal walls, balcony reconstruction of internal walls, balcony
readjustment, realignment of sink in readjustment, realignment of sink in readjustment, realignment of sink in
kitchen, etc. kitchen, etc. kitchen, etc.
• Modular kitchen • Modular kitchen • Modular kitchen
Scope of work • Wardrobes and TV storage units, door, • Wardrobes and TV storage units, door, • Wardrobes and TV storage units, door,
windows, etc. windows, etc. windows, etc.
• Bathroom fittings and fixtures • Bathroom fittings and fixtures • Bathroom fittings and fixtures
• Services including tiling, painting, • Services including tiling, painting, • Services including tiling, painting,
wallpaper, false ceiling, electrical, etc. wallpaper, false ceiling, electrical, etc. wallpaper, false ceiling, electrical, etc.
• Loose furniture and décor • Loose furniture and décor • Loose furniture and décor
Typical spend per

3-5 5-15 15-30 6-10 10-20 20-50 5-20 20-50 50-120
renovation (INR L)*
TAM
Segmental 33 186 270 110 195 170 258 370 227
(US$ M)
| 27
Source: Primary conversations, Praxis analysis Note: *Typical spend on renovation reflects FHD spend
Reno inventory: Flats and builder floors priced INR >1 Cr have good spend
(INR >10L) and willingness to engage a single stop solution provider (2/2)
Value (INR L) <50 50-150 >=150 <100 100-200 >=200 <200 200-500 >=500
• Birth of kids
• Moving into a resale property from a rented
• Shifting to new house to move closer to
/ employer provided house • Wear and tear since last renovation
Occasion of renovation workplace
• Wear and tear, prolong termites or seepage • Restructuring for superior space utilization
• Wear and tear, prolong termites or seepage
problems
problems
• Offline: Friends and family; local

• Offline: Friends and family; local
contractors working on properties in the
contractors working on properties in the • Offline: Friends and family; earlier
area; earlier experience with trusted service
Channel of service provider area; earlier experience with trusted service experience with trusted service providers
providers
selection providers • (Online channels used heavily for design
• Online: Portals like JustDial, Houzz, etc.
• (Online channels used for purchase of ideas)
• (Online channels also used heavily for
loose furniture)
design ideas)
• Referral feedback and previous track • Referral feedback and previous track
Major factors influencing the • Previous experience of working with service
record record
decision for selecting providers
• Openness to collaborate on design • Project management capabilities
service provider • Referral track record
• Speedy after-sales service • Design sophistication
• Self-led: Organized and unorganized • Self-led: Organized and unorganized

• Self-driven: Organized and unorganized
Present service delivery buying buying
buying
model • Contractor: Services + unorganized buying • Contractor + ID: Services + unorganized
• Contractor: Services + unorganized buying
buying + design
Cash payment preference ◑ ◔ ◔ ◕ ◕ ◕ ◕ ◕ ◕

Service provider NPS -17% 25% 25%
Use of ID
• Inferior quality of materials and • Difficulty in getting permissions from local • Inferior quality of materials and
workmanship authorities and existing residents workmanship
Points
Major pain • Ad-hoc material demands • Inferior quality of materials and • Ad-hoc material demands
points • Lack of design assistance and after-sales workmanship • Lack of professionalism; multiple follow-ups
Level of
pain point ◑ ◑ ◔ ◑ ◑ ◔ ◑ ◑ ◔
Emerging
serviceability
Segmental ● ● ● ● ● ● ● ● ●
SAM (US$ M) Segmental 0 102 231 16 175 145 119 241 44
% of TAM Segmental 0% 55% 86% 14% 90% 85% 46% 65% 19%
Note: All properties below 50L are not serviceable. Villa less than 100L and above 500L are only serviceable for KnW offering. No Sometimes Mostly
● Serviceable● Serviceable ● Not

Flat and Builder Floor below 100L above 300L are only serviceable for KnW offering | 28
◔◑◕ ●
Low High with customer
behavioural change serviceable
Overall pain points for reno customers: Cost and timeline overruns, distrust
in quality of materials used, and difficulties in residing with ongoing work
Pain level by property type Pain level by micro-market
Criteria Livspace
Flat Builder floor Villa Delhi Gurgaon Noida
Discovery
Centralized platform
selection
“I had a hired a local turnkey

contractor and initially he was
&
Reliable / updated reviews

making all material purchases. He
Limited custom options available
was supposed to install Hettich
Competitive pricing fittings, but I saw him use some
inferior brand once and that led to a
Pricing
Transparent cost breakup

massive loss of trust.”
Reasonable payment schedule
- Customer, Builder floor
Cost overruns apartment, Gurgaon
Qualit
Quality of workmanship
y
Use of quality materials

Track
recor
Volume / variety of past work

d
Reputation / customer advocacy
Reasonable timeline proposed

“I hired local sub-contractors. They
Execution
Adherence to timelines gave me a rough estimate of the

Flexibility with regards to client needs
overall project but ultimately we
ended up spending 15-20% extra,
Ad-hoc material demands which hurt us financially.”
Lack of material transparency - Customer, Builder floor
apartment, Delhi
eness
onsiv
Disciplined follow-ups
Resp
Poor after-sales service
Lack of useful design inputs

Relationship
building
Quality of communication
Frequent change of labor
Push to buy materials from specific “We were living on site when the
vendors work was ongoing. The project got
Permissions of local authorities /
extended by 2 months and it was
existing residents such a challenge. Our life came to
Lifestyle
a standstill and what was

Difficulty in residing with ongoing
renovation work supposed to be an exciting
experience, became a nightmare.”
Stakeholder management
- Customer, Villa, Delhi

Warran
Lack of warranty given

ty
Lack of clarity on warranty usage Level of pain faced

High Low | 29
Livspace customers pointed out higher quote, sub-optimal workmanship
and poor aftersales service as major pain points
Pain points Intensity Description
Customers highlighted very high quote for certain works

Lack of competitive pricing “I have not been able to claim my
(especially civil works where quote is ~2x of market) warranty on kitchen; it is only 6 months
and there is water seepage. I have tried
Customers highlighted that the contractor who worked at site multiple times, but the issue is still not
Low quality of
was no better than the contractor they could have easily resolved”
workmanship - Customer, flat, Gurgaon
sourced from local markets
Customers highlighted that the after sales service has higher

than promised TAT, despite serval complaints stakeholders
Poor after sales service
directly from Livspace do not visit the site, 3rd party vendors or
contractors were sent for inspection “The designer only went ahead with what
suggestions we had provided her; we
didn’t get useful inputs from her. We had
Lack of clarity on warranty expected it to be much better design
Customer highlighted that there is lack of clarity on warranty
usage consultation process”
- Customer, flat, Gurgaon
Customers highlighted that the initial project timelines proposed

Longer timeline proposed
by Livspace were 2-4 weeks longer than local contractors
Customers highlighted that the colour, size and design options “We wanted our house to be ready on
Limited customization and time, so we had gone ahead with a
are very limited in the catalogue furniture; costs for
variety branded player like Livspace. It took 3
customization are significantly higher than the market price more weeks and quality of workmanship
was not great anyways.”
Customers highlighted that the projects were not completed in - Customer, flat, Delhi
Lack of adherence to
the proposed timelines, even after extensions some finishing
timeline
work was left undone (e.g. corner finishing in custom furniture)
Customers feel that the allocated ID on the project was

Limited design inputs
inexperienced and was not proactive in design suggestions
“We got a quote from Livspace since it is
Customers highlighted that the ID was inefficient in conveying a reputed brand and we wanted it for our
the finalised designs to the contractor. The project renovation; but their quote was ~1.5x of
Poor stakeholder the local contractor.”
management during implementation phase was poor in terms
management - Customer, flat, Delhi
of quality and timelines, leading to the customer’s direct
involvement with the contractor and labour on site
| 30
Centralized platform & transparent cost break-up are strengths of Livspace;
competitive pricing & customization options are opportunities
Livspace: Customization options, competitive pricing
Industry: Cost overruns, lack of warranty and quality
and lack of clarity on warranty usage are key
of workmanship are major challenges
Relative weakness opportunities
Detractor / passives - strength Detractor / passives - strength
2 1 2 1
Centralized
platform
Reasonable Transparent
Timelines cost break-up
proposed Use of
Promoter - weakness
Promoter- weakness
Customization quality material
Promoter - strength
Promoter- strength
options Cost
Lack of useful Warranty overruns
Lack of useful Timeline Competitive
Warranty design inputs
design inputs adherence pricing
Use of Quality of Timeline

Centralized
quality material workmanship adherence Competitive
platform pricing
Transparent
cost Ad-hoc Customization
Lack of clarity on
Break-up Material demand options
warranty usage Quality of
Lack of clarity on workmanship
Cost warranty usage Reasonable
overruns Timelines
proposed
3 4 3 4
Detractor / passives - weakness Detractor / passives - weakness
Relative weakness Weakness for partner but strength for competition
Action items for the player
Intrinsic weakness Weakness for partner
11 Clear strengths 3 Improvement area Opportunity Areas to improve
22 Ignore 4 Opportunities Intrinsic strength Strength for partner
Relative strength | 31
Strength for partner but weakness for competition
Within INR >50L properties, high-end corporate employees / professionals is the
most addressable segment for Livspace
Typical annual household income
<INR 10L INR 10-30L INR 30-50L INR 50-100L INR 100-200L INR 200-300L >INR 300L
◕Mid-income service ●High end corporate employees ◕

Private service
class employees / / professionals Super affluent

professionals
Occupation type
◑
Public sector
Public sector
employees
◔
Investors / landlords
Private business
◑ Modern business owners

◔
◔
Super affluent
Traditional mid-scale business owners
○◔ ◑ ◕ ●
Note: D, G, N stands for Delhi, Gurgaon, and Noida respectively \ | 32
Source: Primary interviews, Praxis analysis Level of tech savviness Low High Addressability
Within INR >50L properties, 9 customer archetypes (incl. 2 micro market
level different archetypes) are identified for Delhi NCR market
Persona /
Delhi Gurgaon Noida
Geography
7% 10% 9%
High-end
• Couples living independently or in mid-
corporate large families / in reno builder floor
employees / apartments typically – go for independent • Independent working couples typically living in new flats and look for full-stack integrated
professionals sub-contractors due to housewives / family interior design solutions
members acting as project managers and
deep knowledge of local service providers
27% 20% 30%

Mid-income
• Couples living independently or in mid-
service class large families / in reno builder floor
employees / apartments typically – go for independent • Independent working couples typically living in new flats and look for turnkey solutions for
professionals sub-contractors due to housewives / family hassle-free execution but savings on exorbitant design fees levied by full-stack ID firms
members acting as project managers and
deep knowledge of local service providers
Modern 6% 8% 3%
business owners • For both new and reno property types, customers across micro-markets typically look to hire turnkey contractors with independent ID / architect
to get flexibility and room to lead design process
Traditional 23% 5% 10%

business owners • For both new and reno property types, customers across micro-markets extremely price sensitive and look to hire sub-contractors to save
project management costs
Public sector 18% 5% 2%

employees • For both new and reno property types, customers across micro-markets look for hassle-free execution solutions and typically go with turnkey
contractors offering minimal design assistance
3% 3%
Super affluent ✖
• For both new and reno property types, customers look for integrated renovation solutions and (not present in this micro-market)
typically hire specialized sub-contractors / full-stack interior design firms
16% 48% 46%
• Invests in value KnW++ in new flats and builder floor apartments; for reno properties, only • For both new and reno properties, typically
Investors invest in basic facelift once in 2-3 years only invest in basic facelift because of low
• Typically look for turnkey contractors offering budget, packaged solutions for hassle-free rental yields and hire turnkey or
experience independent sub-contractors typically | 33
Within INR >50L properties, 9 customer archetypes are identified for target
market (1/2)
High-end corporate employees / professionals Mid-income service class employees / professionals Modern business
Delhi Gurgaon, Noida Delhi Gurgaon, Noida owners
• Highly educated, • Highly educated, • Educated, typically • Educated, working • First -generation
typically only husband working couples at only husband working couples at entry-mid inheritors of traditional
working at mid-senior mid-senior levels in at entry-mid levels in levels in MNCs or family businesses or
levels in MNCs or MNCs or senior MNCs or professionals professionals like owners of modern
senior professionals professionals like like teachers, doctors teachers, doctors etc. entrepreneurial
like teachers, doctors teachers, doctors etc. etc. • Typically first-generation ventures
etc. • May have ancestral • Typically living in migrants to Delhi NCR • Modern, tech-savvy but
• Typically living in residence in Delhi but ancestral residence in • Modern, tech-savvy, key decisions
ancestral residence in typically move to Delhi with small-mid career oriented influenced by
Delhi with small-mid Gurgaon sized family and • Conscious about traditional views by
sized family and • Modern, tech-savvy, occasionally live budget, but value parents
occasionally live career oriented, independently design • Conscious about
independently aspirational for good • Modern, tech-savvy, • Look for turnkey budget, but value
• Modern, tech-savvy, lifestyle and eco- career oriented solutions; process, and design
career oriented, conscious • Conscious about professionalism-oriented • Use online channels for
aspirational for good • Conscious about budget, but value vendor discovery but
lifestyle design, and look for design gives preference to past
• Look to hire full-stack solutions • Look to hire independent vendors
independent sub- • Process, and sub-contractors to save
contractors to save professionalism-oriented project management fee
project management in presence of wife or
fee in presence of wife other family members
or other family acting as PMs but may
members acting as hire a freelance architect
PMs but may hire a independently
freelance ID
independently
D 7% 27% 6%
G 10% 20% 8%
N 9% 30% 3%
Note: D, G, N stands for Delhi, Gurgaon, and Noida respectively; percentages represent %age of SAM units | 34
market (2/2)
Traditional business owners Public sector employees Super affluent Investors
• Small-mid scale business • Current or ex-public sector • Large scale business owners, • Owners of small-mid scale
owners employees executives of multinational businesses or professionals
• Predominantly present in Delhi • Senior independent couples corporations, etc. with government-provided
and are typically native with millennial kids who • Typically from Delhi but may housing; native inhabitants of
inhabitants typically don’t live with move to Gurgaon for superior Delhi typically
• Primary customers not highly parents urban living experience • Invest in renovation only to give
tech savvy unlike their kids who • Primary customers not highly • Primary customers highly tech property a facelift
can influence key purchase tech savvy unlike kids who savvy if in 35-45 age group; in • Conscious about budget,
decisions significantly influence key purchase >45 age, tech adoption slightly agnostic about design, and
• Conscious about budget, decisions and vendor discovery lower look for hassle-free
driven by functionality and • Value quality over design, and • Look for luxury, sophisticated experience
value brand experience look for a convenient, hassle- designs and hassle-free,
free experience integrated experience
D 23% 18% 3% 16%
G 5% 5% 3% 48%
N 10% 2% - 46%
High-end corporate employees / professionals value design and almost always
seek independent or full-stack design solutions (1/2)
Customer archetypes
High-end corporate employees Mid-income service class
Journey Modern
Parameter / professionals employees / professionals
stage business
Gurgaon, Gurgaon, owners
Delhi Delhi
Noida Noida
Experience with interior design
services
✔ ✔ ✔ ✔ ✔
Dependence on internet to find
service providers
✔ ✔ ✔ ✔ ✔
Discovery
Family, friends Online, friends, Family, friends Online, friends, Online, friends,
Info gathering behavior
and local shops and family and local shops and neighbors and family
Negotiation ◑ ◔ ◕ ◑ ◑
Relationship, Design, Relationship, Price, timelines,
Track record,
Top purchase criteria track record, timelines, track record, convenience,
flexibility, price
price communication price design
Preferred service providers + + +
Need for financing ✔ ✔ ✔ ✔ ✔
Service
provider
Price sensitivity ✔ ✔ ✔ ✔ ✔
selection Reno spend (% of house value) 8-10% 10-12% 7-9% 8-10% 8-10%
Emphasis / concern about quality ✔ ✔ ✔ ✔ ✔
Affinity for 3D design ✔ ✔ ✖ ✔ ✔
Design
Affinity for design customization ✔ ✔ ✔ ✔ ✔
Constraint on project timelines ◑ ◕ ◑ ◕ ◑
Delivery
Degree of involvement during ◕ ◑ ◕ ◑ ◕
execution
Post-completion servicing sought ◑ ◕ ◑ ◕ ◑
○◔ ◑ ◕ ●
Post-delivery | 36
Low High Full-stack Independent
Turnkey contractor Sub-contractors ✖ Never ✔ Sometimes ✔ Often
Source: Primary conversations, Praxis analysis ID ID / architect
Super affluent customer segment typically always go for a full-stack ID solution
or a combination of ID and specialized sub-contractors (2/2)
Customer archetypes
Journey
Parameter Traditional Public sector Investors /
stage Super affluent
business owners employees landlords
Experience with interior design

services
✔ ✔ ✔ ✖
Dependence on internet to find

service providers
✔ ✔ ✔ ✖
Discovery
Family, neighbors
Family, neighbors, Family, friends, and Online, friends, and
Info gathering behavior and local service
and local shops neighbors family
providers
Negotiation ◕ ◑ ◔ ◕
Price, relationship, Track record, price, Design, track record, Convenience,

Top purchase criteria
track record quality, convenience convenience relationship, price
Preferred service providers or + or

Need for financing ✔ ✔ ✖ ✖
Service
provider Price sensitivity ✔ ✔ ✖ ✔
selection Reno spend (% of house value) 7-10% 8-10% 10-12% 4-5%
Emphasis / concern about quality ✔ ✔ ✔ ✔
Affinity for 3D design ✖ ✖ ✔ ✖
Design
Affinity for design customization ✔ ✔ ✔ ✖
Constraint on project timelines ◑ ◑ ◑ ◕
Delivery
Degree of involvement during ◕ ◑ ◕ ◔
execution
Post-completion servicing sought ◑ ◑ ◕ ◔
Post-delivery
Low ◔ ◑ ◕ ● High
Turnkey contractor Sub-contractors
Full-stack
ID
Independent
ID / architect
✖ Never ✔ Sometimes ✔
| 37
Often
Customer archetypes 38% Value 27%
36% 16%
11% Mid-income service Mid-income
12%
emp. / pro. service emp. Traditional
Business
Investors 29% Volume 27% owner
Super 9%
46% 23% affluent
High-end 3%
8% corporate emp. / pro.
High-end
8% corporate emp. / pro.
13%
Traditional 7%
Business 12%
5%
owner 11%
16%
16%Investors
14% 14%
Modern
18%
Public sector
Business 5% 14% employees
owners
2% 6%
70% 9%
2%
Modern
Public sector
Business
employees 73% owners
33% 48% 5% Delhi

3%
Investors 20% 5% Traditional Gurgaon
3% 10% 6% Business
20% owner, Noida
Mid-income
service emp. / pro.
Super Modern
Public sector
employees
3%
15% affluent High-end
Business
12% owners
corporate emp. / pro. 12% | 38
Note: SAM percentage share of each persona by value and volume in the respective micro market
Mid income professionals is the biggest segment by volume (~28%)
followed by investors (~26%); total SAM is US$ 1.3B
Market overview by volume % Total ~93K Market overview by value % Total US$ 1.3B
~65K ~15K ~13K US$ US$

US$ 951M
177M 183M
100% Super affluent, 3% 3% 3%
100%
5%
Modern business, 9%
Modern business, 6% 8% 2% 12%
8%
90% High-end corporate employees / 90%
2% 3%
professionals, 7%
10% Public sector, 12%
80% 80%
Public sector, 18% 5% 36%
70% 70% Investors, 14%

33%
46% High-end corporate employees /
60% Investors, 16%
60% professionals, 9%
Super affluent, 14% 11%

50% 48% 50%
12%
8%
40% Traditional business, 23% 40%
Traditional business, 16%
11%
30% 30% 15%
5% 3%
20% 20% 38%
Mid-income service class employees / 29% Mid-income service class
professionals, 27% employees / professionals, 27%
10% 20% 10% 20%
0% 0%
Delhi Noida Gurgaon Delhi Noida Gurgaon
Source: Govt data, Secondary research, Primary research, Praxis analysis
Of the total customers (N=51), 41% looked online for finding SP; 33% took
quote and 14% finally went ahead with an SP found online
Total respondents (N = 51)
got a quote from a service provider
Online adoption: 33% consumers
100%
they found online
41% 33%
14%
Total respondents Searched online Online quote Online selection

▪ While platforms like JustDial, ▪ Already known service ▪ Distrust on credentials of
IndiaMart, Houzz, etc. are used provider, unimpressive online service providers,
to source local contractors and website / portfolio were the higher quote and
benchmark prices, social media key reasons for not getting unimpressive past work
platforms like Facebook, a quote from a SP found portfolio were the key
Instagram used for ID discovery online reasons for not selecting
with a SP found online
Total respondents (N = 51)
100%
49%
20%
2%
Livspace
Total respondents Heard of Livspace Quote from Livspace Selected Livspace

▪ Majority of the consumers ▪ Already known service ▪ Higher quote, longer project
discovered Livspace online; a provider, perception of high timelines, and initial
few have heard from offline price and negotiation power dissatisfaction with allocated
sources like colleagues, in the process were the key designers primary drivers
neighbors, friends, family or call reasons for not getting a for non-conversion from
from sales rep. quote from Livspace quote to selection phase
| 40
Source: Primary research, Praxis analysis
market (1/2)
owners
Delhi Gurgaon, Noida Delhi Gurgaon, Noida
freelance ID
independently
D 7% 27% 6%
G 10% 20% 8%
N 9% 30% 3%
Customer personas deep dive: High-end corporate employees /
1A
professionals (Delhi)
PROFILE RENO BEHAVIOR HOW TO WIN
Age: 30-45 years • Generally, parents and larger ancestral family hail from Delhi and primary
customers stay with family; in a few cases couple may live separately for greater
Legacy &
Annual HHI: INR 50-200L independence
family • Extended family generally have small-mid scale businesses or are retired public
servants and in most cases, wife not working
Family size: 2-5
• Highly educated – typically hold a masters degree in engineering, management,

Education & finance, etc. from a premium graduate school
profession • Employed for high-end managerial roles in functions like finance, IT, marketing,
etc.
• Climb the corporate ladder and establish a close-knit circle with similar-minded
people
Goals • Enjoy high-quality, luxury living in line with global standards
• Well acquainted with global designs since they are “well travelled” therefore seek
Free Busy trendy designs
• Inherit ancestral wealth and typically stay in property originally purchased by

Tech challenged Tech savvy
parents; in case of independent living, look to buy flats of average value INR 1.5-
Property &
2Cr
Functional Luxurious
wealth • Own 1-2 cars of premium brands like Skoda, Volkswagen, etc. and is the primary
mode of transport
Economical Indulgent
• Frequent (once in a month typically) staycations in luxury resorts located in sub-
Illiterate Educated
Hobbies & urban areas of city and 1-2 foreign vacations annually
leisure • Common hobbies include reading, board gaming, exercising, and watching
content on streaming platforms like Netflix, Amazon Prime, etc.
Suspicious Trusting
• Conscious about online activity and preference for small online circles; Instagram
and LinkedIn preferred social media platforms and Pinterest for design research
Collectivistic Individualistic Online
• Consume news online generally and use apps like DailyHunt, InShorts, etc.
activity • Regular ecommerce buyers but tend to buy only low value items, up to INR 10K
from online platforms
| 42
1A
Reno villas /
Reno type:
builder floors
Need Discovery Selection Design Execution Post sales
Micro-market presence: Delhi
• Resides in • Discovery • Key triggers: • Looks to hire • Tends to be • No formal
Reno spend: 8-10%
ancestral influenced by - Prior track independent ID very involved agreement
Typical property value: INR 3-8Cr property for 10+ parents and self record and / architect to get during and access to
Preferred service provider: Sub-contractors
years; experience of referral flexibility and execution since after-sales
+ independent ID sometimes working with feedback room to lead customer typically
Service provider NPS: 0% looks for resale service provider - Trust and design process inhabits or painful and
flats closer to and go with him quality of • Does heavy stays close to long-drawn
parental if feedback is existing design property • If service
residence positive relationship research, • Also very provider
through • Other sources - Design collaborates involved during unresponsive,
independent include social assistance with ID material looks for local
brokers media, online and proactively, and selection and contractors to
• Hires sub- service customization seeks extensive makes all key fulfill after-
contractors & platforms, and flexibility customization purchases sales
indp. designer referrals himself requirements
Cash Digital
KnW DHI Furniture Services Design

Low design High design
involvement involvement • Parallel-shaped • Addition of • Traditional • Marble-based • Mix of ethnic
modular POP panels, sofas, with pooja unit in and
kitchen with and dark, rolled arms drawing room contemporary
Low process High process
involvement involvement use of high- wooden most common separated designs
gloss laminate / flooring in • Use of original using latticed • Neutral colors
acrylic cabinets bedrooms teak wood / ‘jaali’ like beige,
Low price High price
sensitivity sensitivity • Full-height • Use of ethnic sheesham in • Addition of grey, white with
sliding lights, coffee tables, glass partition use of vibrant
wardrobes with traditional ‘jaali’ dining tables, in bathrooms colors like
Low degree of High degree of membrane / partition etc. with subtle with patterned mustard,
negotiation negotiation
glass finish / commonly curves tiles, vanity orange most
glass shutters seen occasionally storages, etc. common
Flexible with Rigid with
timelines timelines Inhibitions pre-service provider selection Learnings post execution
• Apprehension about hiring branded full stack • Ideal to go with branded service providers with
Flexible with cost Rigid with interior design firms with fear of losing control on superior accountability and who offer material
overruns cost overruns
design process and hence home lacking transparency and speedy after-sales services
‘personal touch’
| 43
1ACustomer personas deep dive: High-end corporate employees /
Pain points Value proposition How to target?

Inconsistent or poor quality Integrated, one-stop offering Video commercials highlighting
of workmanship Livspace’s key value prop
Lack of after-sales solutions Structured, post-sales
from service provider solutions Experience centers in key
High commitment on micro-markets
Timeline delays
timeline adherence Lead gen partnerships with
Poor design replication &
limited customization offered Enhanced design housing society associations
by contractor collaboration and assistance
Offline advertisements in
Stakeholder management Broader variety of custom print media like newspapers
options
How can Livspace offer a ‘wow’ experience? Geographical concentration
• Preliminary • Only one point-
• One stop
timeline and cost of-contact during
visual content
estimation at EC execution
platform for
• Rich variety of • Regular
design and Central
traditional, progress /
material N
education
modern & fusion material updates NE Delhi
designs at EC to customer
New E
Need Discovery Selection Design Execution Post sales Delhi
• Video commercials
• Scientific allocation • Warranties and
highlighting Livspace’s
of ID after initial structured post-
delivery processes,
customer profiling sales packaged
design portfolio, customer
• Collaborative solution against
testimonials,
designing process one-time fee
walkthroughs, etc.
with customers • Annual contracts
• Partnership with housing • Delhi: Greater Kailash, Vasant Kunj, East of
with on-demand for maintenance,
society associations Kailash, Kailash Colony, Sant Nagar
3D visualization deep cleaning,
• Offline print
output etc.
advertisements | 44
market (1/2)
owners
freelance ID
independently
D 7% 27% 6%
G 10% 20% 8%
N 9% 30% 3%
1B
professionals (Gurgaon, Noida)

Age: 30-45 years • Generally, parents and larger ancestral family hail from Delhi and customers move
to corporate centers like Gurgaon to be closer to workplace or enjoy a superior
Legacy &
Annual HHI: INR 50-200L urban lifestyle
family • Extended family generally have small-mid scale businesses or are retired public
servants
Family size: 2-3
• Highly educated – typically hold a masters degree in engineering, management,

Education & finance, etc. from a premium graduate school
profession • Employed for high-end managerial roles in functions like finance, IT, marketing,
etc.
• Climb the corporate ladder and establish a close-knit circle with similar-minded
people
Goals • Enjoy high-quality, luxury living in line with global standards
• Well acquainted with global designs since they are “well travelled” therefore seek
Free Busy trendy designs
• May have ancestral wealth but live on rent typically before first property purchase
• First-time property buyers, typically flats with median price of INR 1.5-2Cr and
Property &
take loan to purchase property
wealth • Own 1-2 cars of premium brands like Skoda, Volkswagen, etc. and is the primary
mode of transport
Illiterate Educated
Hobbies & urban areas of city and 1-2 foreign vacations annually
leisure • Common hobbies include reading, board gaming, exercising, and watching
content on streaming platforms like Netflix, Amazon Prime, etc.
Suspicious Trusting
• Conscious about online activity and preference for small online circles; Instagram
and LinkedIn preferred social media platforms and Pinterest for design research
• Consume news online generally and use apps like DailyHunt, InShorts, etc.
activity • Regular ecommerce buyers and comfortable spending up to INR 20-30K on
ecommerce platforms on a regular basis
| 46
1B

Reno type: New flats
Micro-market presence: Gurgaon, Noida
• ~1-month • Customer does • Most material • Gets warranty
Reno spend: 10-12% • Look for new • Discovery
process heavy design purchases on major
Typical property value: INR 1.5-2Cr flats, mostly in heavily through research and made by
• Key triggers: fittings,
Gurgaon online platforms collaborates service provider
Preferred service provider: ID (18%) / turnkey - High furniture, etc.
Contractor (55%) • Customer like Instagram, with ID but may
customer • No formal
Service provider NPS: 25% typically gets Facebook, proactively accompany
empathy, agreement of
possession 1-2 integrated • Needs contractor for
design after-sales on
years post platforms like visualization high value
collaboration services like
booking Livspace, support before material
but hassle- tiling, glass, etc.
• Look for service HomeLane, etc. design closure purchases
free • If issue is minor
providers with • Referrals from and frequently • Typically, 1-2
execution and SP
strong design close friends asks for 3D visits per week
- Transparency unresponsive,
portfolio and and neighbors layouts
of BOQ and may use
full-stack in new property
materials platforms like
offerings building
Cash Digital used UrbanClap, etc.

involvement involvement • Modular, L- • Neutral / pastel • Contemporary / • Wooden • Contemporary
shaped / soft-hued modern, sleek flooring in and minimalist
kitchens with color tones with and light- bedrooms, and themes like
involvement involvement built-in occasional use weight loose premium Scandinavian ,
appliances of dark, vibrant furniture marble-finish Nordic, etc.
• Integrated colors in select • Concealed tile flooring in • Addition of
sensitivity sensitivity counter and areas handles and living area elements like
breakfast soft close most common wooden
tables hinges partition, glass
Low degree of High degree of • Easy- paneling, etc.
maintenance, to augment
laminate finish space
• Distrust in quality of materials used by local • Ideal to check for design alignment and service
Flexible with cost Rigid with service providers and fear of paying more than provider’s ability to replicate designs before
overruns cost overruns market value selection
• Demanding pressures of managing work, life and • Ideal to go with service provider who can offer
ongoing reno project bigger custom variety | 47
Source: Consumer survey (N=101), Primary research, Praxis analysis
1B


Multiple stakeholder Integrated, one-stop offering Video commercials
management highlighting Livspace’s key
Seamless and quality value prop
Poor quality of
communication communication Promotional campaigns and
demos in key corporate hubs
Timeline delays High commitment on
timeline adherence Lead gen partnerships with
Lack of useful design inputs property management firms
Enhanced design
from service provider
collaboration and assistance Lead gen partnerships with
Lack of willingness to
housing loan providers
understand customer needs Superior customer empathy
• One stop • Preliminary • Only one point-

visual content budget and of-contact
platform for timeline during design
design and estimation tool and execution Central
N
material on Livspace phase NE Delhi
education website respectively
New E
Delhi
• Warranties and
• Collaborative structured post-
delivery processes,
designing sales packaged
design portfolio,
process with solution against
customer testimonials,
customers with one-time fee
walkthroughs, etc.
on-demand 3D • Annual contracts • Gurgaon: Golf Course Road, Gold Course
• Partnership with real
visualization for maintenance, Extension Road, Gurgaon, DLF Phase 1-5,
estate brokers and
output deep cleaning, Sushant Lok
housing loan
etc. • Noida: Sector 135
facilitators | 48
market (1/2)
owners
freelance ID
independently
D 10% 29% 5%
G 10% 20% 8%
N 8% 29% 3%
Customer personas deep dive: Mid-income service class employees /
2A
Age: 35-50 years • Generally, parents and larger ancestral family hail from Delhi and primary
customers stay with family; in a few cases couple may live separately for greater
Legacy &
Annual HHI: INR 15-50L independence
family • Extended family generally have small businesses or are retired public servants /
professionals; in most cases, wife not working
Family size: 2-6
• Educated – may hold a masters degree in management, finance, etc. or a
professional degree in law, medicine, accountancy, etc.
Education &
• Mid-level managers in corporate organizations or professionals like teachers /
profession professors, lawyers, doctors, etc. either practising independently or part of an
organization
• To continuously upgrade standards of living and move away from an affordable to

a premium lifestyle
Goals • To accumulate savings and buy own home, take foreign vacations, invest in other
properties, etc.
Free Busy
• Typically ancestral wealth limited to one property which customer and family
inhabit
Property &
• Some customers move to live independently and typically buy flats with average
wealth value of INR 0.7-1.2Cr and almost always take loan to purchase property
• Own 1 car in the affordable segment but also use public transport extensively
• Enjoy travelling and take 2-3 domestic vacations in a year and 1 foreign vacation
Illiterate Educated
Hobbies & in 2 years
leisure • Common hobbies include socializing, shopping, exercising and playing sports,
and watching content on streaming platforms like Netflix, Amazon Prime, etc.
Suspicious Trusting
• Regular users of social media apps like Facebook, Instagram, WhatsApp, etc.;
Collectivistic Individualistic Online Pinterest for design research
activity • Regular ecommerce buyers but tend to buy only low value items like apparel,
cosmetics, up to INR 5-10K from online platforms
| 50
2A
Reno flats /
Reno type:
builder floor
• Resides in • Discovery • Key triggers: • Does extensive • Tends to be • No formal
Reno spend: 7-9%
ancestral influenced by - Prior track research and very involved agreement
Typical property value: INR 1-2 Cr property for 10+ parents and self record and gives design during and access to
Preferred service provider: Sub-contractor
years; experience of referral inputs to execution since after-sales
sometimes working with feedback contractor customer typically
Service provider NPS: -29% looks for resale service provider - Trust and directly; may inhabits or painful and
flats closer to and go with him quality of hire architect in stays close to long-drawn
parental if feedback is existing civil-heavy property • If service
residence positive relationship projects • Also very provider
through • Other sources - Competitive • Makes select involved during unresponsive,
independent include social pricing and purchases like material looks for local
brokers media, online reasonable kitchen from selection and contractors to
• Hires sub- service timelines specialized makes all key fulfill after-
contractors & platforms, and vendors for purchases sales
designs himself referrals better designs himself requirements
Cash Digital

involvement involvement • Standard • Use of false • Use of pre- • Addition of • Basic designs
elements like ceiling, bright existing laminate focused on
laminate, textured paints furniture wooden efficiency, and
involvement involvement membrane in select areas typically to flooring in budget
finishes to add vibrancy reduce costs bedrooms • Greater spend
balanced with • Use of wooden • Addition of • Addition of on living room
fancy, designer rafters, glass dressing unit fancy lights in designs – use
sensitivity sensitivity
elements like paneling for built-in drawing / of handleless
Moroccan tiles economical wardrobes, common area acrylic
Low degree of High degree of • Laminate space functional shoe cabinets,
wardrobes with utilization and cabinets with artefacts, décor
hinged doors augmentation seating, etc. items, etc.
• Distrust in quality of materials used by local • Lack of original design ideas from local
Flexible with cost Rigid with service providers and fear of paying more than contractors and harmony in overall look
overruns cost overruns market value • Pressures of managing work, life and reno work
• Skeptical about outsourcing project to local too demanding and best to go with branded,
turnkey contractors – fear of loss of control integrated solutions | 51
2A

Integrated, one-stop value
Stakeholder management offering Video commercials highlighting
Livspace’s key value prop
Limited availability of Updates on delivery processes
budget, full-stack offerings / raw material purchases Digital content marketing
High commitment on partnerships with popular creators
Timeline delays timeline adherence
Lead gen partnerships with mid-
Lack of guidance from service Enhanced design and sized brokers in key micro-markets
provider on material purchases material assistance
Lead gen partnerships with
Difficulties in finding right Offline stores with good offering housing loan discovery platforms
service providers mix in prices, design and materials
• Promotion of • Preliminary • Allocation of
Livspace’s budget and an entry level
value stores in timeline project
print media estimation tool manager and Central
and in all key on Livspace proactive N
geographical website and at process NE Delhi
micro-markets offline stores updates
New E
Delhi
• Offline franchisee
• No frills, design
stores in down-market
packages with
and mid-market areas • Option of
minimal ‘plug
to build visibility products with no
and play’
/ shorter
customization
• Lead-gen partnerships warranty periods
with local builders and
options and
to save costs • Delhi: Lajpat Nagar, Gautam Nagar, Amar
subsequent Colony, Pitampura, Dwarka, Vikaspuri,
brokers in select
quote generation Janakpuri
micro-markets
| 52
market (1/2)
owners
freelance ID
independently
D 7% 27% 6%
G 10% 20% 8%
N 9% 30% 3%
2B

Age: 35-50 years

• Independent, nuclear family; parents and larger ancestral family hail from a non-
Legacy & metro city and customers migrate to urban centers in NCR for job opportunities
Annual HHI: INR 15-50L family • Extended family generally have small businesses or are retired public servants /
professionals like ex-professors, ex-railway officers, etc.
Family size: 2-4
• Educated – may hold a masters degree in management, finance, etc. or a
professional degree in law, medicine, accountancy, etc.
Education &
• Mid-level managers in corporate organizations or professionals like teachers /
profession professors, lawyers, doctors, etc. either practising independently or part of an
organization

a premium lifestyle
Goals • To accumulate savings and buy own home, take foreign vacations, invest in other
properties, etc.
Free Busy
• Typically have little-no ancestral wealth and live on rent before first property
purchase
Property &
• First-time property buyers, typically flats with average value of INR 0.7-1.2Cr and
wealth almost always take loan to purchase property
• Own 1 car in the affordable segment but also use public transport extensively
• Enjoy travelling and take 2-3 domestic vacations in a year and 1 foreign vacation
Illiterate Educated
Hobbies & in 2 years
leisure • Common hobbies include socializing, shopping, exercising and playing sports,
and watching content on streaming platforms like Netflix, Amazon Prime, etc.
Suspicious Trusting
• Regular users of social media apps like Facebook, Instagram, WhatsApp, etc.;
Pinterest for design research
• Regular ecommerce users and comfortable spending up to INR 10-20K online;
activity use tech platforms like BigBasket, Grofers, UrbanClap, etc. for essential services
extensively
| 54
2B

Reno type: New flats
• Looks for new, • Discovery • Key triggers: • Looks to hire • Typically makes • No warranty on
Reno spend: 8-10%
budget flats through local - Competitive independent ID all material items built on
Typical property value: INR 0.7-1.2Cr through online building / area pricing and / architect to purchases or site like kitchen,
Turnkey contractor portals / contractors, reasonable save exorbitant maintains strict wardrobes, etc.
Preferred service provider:
(59%) recommendatio and online timelines design fee supervision to • If service
Service provider NPS: -4% ns from friends; social media - Design charged by monitor quality provider
willing to channels and assistance bigger studios • Tends to be sourced locally,
compromise service from service • Does heavy very involved in easier to get
with location for platforms like provider but design the day-to-day after-sales
property size UrbanClap, etc. flexibility with research, operations – since the
• Preference for • Referrals from material collaborates visits site 2-3 service provider
turnkey close friends purchases, with ID times a week aims to
solutions with and neighbors customization proactively, and and / or seeks maintain
design in new property - Process- seeks extensive regular updates reputation
capabilities building oriented customization on WhatsApp
Cash Digital

involvement involvement • Standard • Use of false • Use of pre- • Addition of • Basic designs
elements like ceiling, bright existing laminate focused on
laminate, textured paints furniture wooden efficiency, and
involvement involvement membrane in select areas typically to flooring in budget
finishes to add vibrancy reduce costs bedrooms • Greater spend
balanced with • Use of wooden • Addition of • Addition of on living room
fancy, designer rafters, glass dressing unit fancy lights in designs – use
elements like paneling for built-in drawing / of handleless
Moroccan tiles economical wardrobes, common area acrylic
Low degree of High degree of • Laminate space functional shoe cabinets,
wardrobes with utilization and cabinets with artefacts, décor
hinged doors augmentation seating, etc. items, etc.
Flexible with cost Rigid with service providers and fear of paying more than contractors and harmony in overall look
overruns cost overruns market value • Pressures of managing work, life and reno work
• Limited availability of budget offerings in market too demanding and best to go with branded,
with design and project management solutions integrated solutions | 55
2B


Integrated, one-stop value Video commercials
Lack of material
offering highlighting Livspace’s key
transparency
Updates on delivery processes value prop
Limited availability of
budget, full-stack offerings / raw material purchases Promotional campaigns and
High commitment on demos in key corporate hubs
Timeline delays timeline adherence
Lead gen partnerships with mid-
Lack of useful design inputs Enhanced design and material sized brokers in key micro-markets
/ available customization assistance
Lead gen partnerships with
Lack of professionalism in Superior customer empathy and housing loan discovery platforms
local service providers high-quality brand experience
• One stop • Preliminary • Only one point-

visual content budget and of-contact
platform for timeline during design
design and estimation tool and execution Central
N
material on Livspace phase NE Delhi
education website respectively
New E
Delhi
• Warranties and
• Collaborative structured post-
delivery processes,
designing sales packaged
design portfolio,
process with solution against
customers with one-time fee
walkthroughs, etc.
on-demand 3D • Annual contracts • Gurgaon: Sector 49, Sector 50, Sector 46,
• Partnership with real
visualization for maintenance, Sector 70 & 70A, Sohna Road
estate brokers and
housing loan
output deep cleaning, • Noida: Noida Extension, Greater Noida,
etc. Sector 135
facilitators | 56
market (1/2)
owners
freelance ID
independently
D 7% 27% 6%
G 10% 20% 8%
N 9% 30% 3%
3 Customer personas deep dive: Modern business owners
Age: 35-45 years • Independent family consisting of customer, spouse, 1-2 kids, and parents / in-
laws; customer and larger family often native inhabitants of Delhi NCR
Legacy &
Annual HHI: INR 50-200L • Typically part of a larger joint family originally and moved to urban centers within
family the city for greater independence and modern living; decision making process
highly collectivistic, greatly influenced by parents
Family size: 3-5
• Varied levels of education but usually from a tier-2/3 school, and often go to
foreign universities for higher education
Education &
• Have either inherited traditional family businesses in retail, trading, manufacturing
profession etc. or started modern entrepreneurial ventures like tech startups, breweries, new-
age restaurants etc. – business jointly run by young couple
• To improve and scale traditional family business using modern practices

Goals a lavish lifestyle
• To maximize wealth for purposes of investment and inheritance and to invest in
Free Busy renovation and design home that is in line with social expectations
• Typically acquire wealth in the form of one or multiple ancestral properties but look
to upgrade to a more premium property in a prime location
Property &
• Preference for spacious builder floor apartments of average value of INR 1.5-3Cr
wealth and look to finance purchase with mix of loan and ancestral money
• Own 2-3 cars in the mass premium segment like Skoda, Volkswagen, etc.
• Influenced by parents traditional believes and generally do not live an indulgent
Illiterate Educated
Hobbies & life – take 1-2 trips annually to domestic locations, and prefer to stay indoors
leisure • Common hobbies and leisure activities include watching TV together, exercising
and meditating, playing indoor games like cards, carrom, etc.
Suspicious Trusting
• Active social media with Facebook, WhatsApp, and YouTube among most
commonly used platforms
• Regular ecommerce buyers and purchase items of everyday use like apparel,
activity cosmetics, electronics, etc. online for variety, convenience and discounts; hesitant
about making high value purchases online and look offline to ascertain quality first
| 58
New / reno
Reno type:
builder floor
Micro-market presence: All
• Looks for • Discovery • Key triggers: • Looks to hire • Tends to be • No formal
Reno spend: 8-10%
builder floor influenced by - Prior track independent ID very involved agreement
Typical property value: INR 1.5-3Cr apartments parents and self record and / architect to get during and access to
Turnkey contractor through experience of referral flexibility and execution and after-sales
Preferred service provider:
(53%), ID firm (12%) recommendati working with feedback room to lead makes 3-5 typically
Service provider NPS: -6% ons and service provider - Trust and design process visits to site per painful and
individual and go with him quality of • Does heavy week long-drawn
brokers if feedback is existing design • Also very • If service
• Generally positive relationship research, involved during provider
hires turnkey • Other sources - Design collaborates material unresponsive,
solutions for include social assistance with ID selection and looks for local
hassle-free media, online and proactively, and makes all key contractors to
execution and service customization seeks extensive purchases fulfill after-
independent platforms, and flexibility customization himself sales
architect / ID referrals requirements
Cash Digital
involvement involvement • Parallel-shaped • Addition of • Traditional • Marble-based • Mix of ethnic
modular POP panels, sofas, with pooja unit in and
kitchen with and dark, rolled arms drawing room contemporary
involvement involvement
use of high- wooden most common separated designs
gloss laminate / flooring in • Use of original using latticed • Neutral colors
acrylic cabinets bedrooms teak wood / ‘jaali’ like beige,
Low price High price • Full-height • Use of ethnic sheesham in • Addition of grey, white with
sliding lights, coffee tables, glass partition use of vibrant
wardrobes with traditional ‘jaali’ dining tables, in bathrooms colors like
Low degree of High degree of membrane / partition etc. with subtle with patterned mustard,
negotiation negotiation glass finish / commonly curves tiles, vanity orange most
glass shutters seen occasionally storages, etc. common
• Apprehension about hiring branded full stack • Ideal to go with branded service providers with
Flexible with cost Rigid with interior design firms with fear of losing control on superior accountability and who offer material
design process and hence home lacking transparency and speedy after-sales services
‘personal touch’
| 59

Inconsistent or poor quality Integrated, one-stop offering Experience centers in key
of workmanship furniture hubs
Structured, post-sales
Lack of structured after-sales
solutions Video commercials highlighting
services from service provider
High commitment on Livspace’s key value prop
Timeline delays timeline adherence Lead gen partnerships with mid-
Lack of useful design inputs Enhanced design sized brokers in key micro-markets
from service provider collaboration and assistance
Theme-based workshops (décor,
Lack of customization Broader variety of custom design, etc.) at experience centers
offered by service provider options
• Preliminary • Only one point-
• One stop
timeline and cost of-contact during
visual content
estimation at EC execution
platform for
• Rich variety of • Regular Central
design and
traditional, progress / N
material
modern & fusion material updates NE Delhi
education
designs at EC to customer
New E
Delhi
• Scientific allocation • Warranties and
of ID after initial structured post-
delivery processes,
customer profiling sales packaged
design portfolio,
• Collaborative solution against
designing process one-time fee • Gurgaon: Golf Course Road, Gold Course
walkthroughs, etc.
with customers • Annual contracts
• Partnership with real Extension Road, Gurgaon, DLF Phase 5,
with on-demand for maintenance,
estate brokers Sushant Lok
3D visualization deep cleaning,
• Offline print • Delhi: Defence Colony, Safdarjung Enclave,
output etc.
advertisements Adarsh Nagar, Preet Vihar | 60
Source: Primary research, Praxis analysis • Noida: Sector 39, Sector 40, Sector 42
market (2/2)
• Small-mid scale business • Current or ex-public sector • Large scale business • Owners of small-mid scale
owners employees owners, executives of businesses or professionals
• Predominantly present in Delhi • Senior independent couples multinational corporations, with government-provided
and are typically native with millennial kids who etc. housing; native inhabitants
inhabitants typically don’t live with • Typically from Delhi but may of Delhi typically
• Primary customers not highly parents move to Gurgaon for superior • Invest in renovation only to
tech savvy unlike their kids • Primary customers not highly urban living experience give property a facelift
who can influence key tech savvy unlike kids who • Primary customers highly tech • Conscious about budget,
purchase decisions influence key purchase savvy if in 35-45 age group; in agnostic about design, and
significantly decisions and vendor >45 age, tech adoption slightly look for hassle-free
• Conscious about budget, discovery lower experience
driven by functionality and • Value quality over design, • Look for luxury,
value brand experience and look for a convenient, sophisticated designs and
hassle-free experience hassle-free, integrated
experience
D 23% 18% 3% 16%
G 5% 5% 3% 48%
N 10% 2% - 46%
4 Customer personas deep dive: Traditional business owners
Age: 40-60 years

• Mid-large size families consisting of customer, spouse, 1-2 kids, and parents / in-
Legacy & laws, brothers, etc.; family almost always native inhabitants of Delhi NCR
Annual HHI: INR 20-200L family • Traditional outlook – take decisions collectively, hold strong religious and political
believes, and look for value of money before taking key purchase decisions
Family size: 4-8
• Typically not very educated and even the younger generation look to join family business
soon after attaining basic qualifications
Education & • Small-mid sized traditional family businesses in retail, trading, manufacturing etc. – while
profession younger generation may lead day-to-day operations, key organizational decisions rest
with original inheritors / proprietors of the business; women typically homemakers and
not involved in business functions
• To maximize wealth for purposes of investment and inheritance and to invest in

renovation and design home that is in line with social expectations
Goals • To garner goodwill and be important, well-respected members in local societies
and personal circles
Free Busy
• Typically inherit one or more ancestral properties and look to invest in gold, land,
properties to accumulate wealth and get steady rental income
Property &
• Typically live in self-constructed villas with average value in range of INR 1-4Cr
wealth • Use of public transport and two-wheelers most common in families with HHI <25L;
in HHI >25L families, use of budget cars like Hyundai, Maruti most common
• Influenced by parents’ traditional believes and generally do not live an indulgent
life – take 1-2 trips annually to domestic locations
Hobbies &
Illiterate Educated • Common hobbies and leisure activities include watching TV together, exercising
leisure and meditating, playing indoor games like cards, carrom, etc.
• Socially active and invite guests at place of residence multiple times in a month
Suspicious Trusting
• Not very tech savvy and online activity limited to usage of apps like Facebook,
YouTube and WhatsApp
Collectivistic Individualistic Online • May make occasional low value purchases online with support from their kids but
activity overall refrain from using ecommerce platforms extensively
• Preference for physical shopping experience and ability to pay in cash to avoid tax
scanner | 62
Reno type: Reno villas

• Typically • If experience • Key triggers: • Customer • Typically all • No warranty on
Reno spend: 7-10%
residing in positive, goes - Prior track undergoes little material items built on
Typical property value: INR 1-4 Cr property for 10+ with service record and design purchases site like kitchen,
Preferred service provider: Sub-contractors
years and looks provider referral education and made by wardrobes, etc.
(58%) for renovation customer has feedback tells contractor customer • If service
Service provider NPS: 38% services to worked with in - Trust and about design / himself provider
upgrade quality past quality of customization • Prizes sourced locally,
and ‘look and • Other channels existing required using functionality easier to get
feel’ of property include local relationship on-site and lowest after-sales
• Budget and markets, and - Preference judgement or prices over since the
value conscious recommendatio for cash goes with aesthetics service provider
and looks for ns from payments standard • Stays on site or aims to
independent extended family designs close to site for maintain
contractors and neighbors proposed by daily reputation
Cash Digital service provider supervision

involvement involvement • Semi-modular • Minor false • Solid wood • Use of basic, • Standard
or non-modular ceiling and furniture with local tiles designs with no
Low process High process kitchen with addition of traditional common customization;
involvement involvement laminate / fancy lights designs – thick across house customization
veneer finishes • Traditional legs, bulky, etc. but tendency to sought on
on wooden prints (floral, • Typically, no spend more on dimensions
sensitivity sensitivity cabinets geometrical, storage units or high-value only
• Traditional etc.) on walls designs with marble and • Designs
independent created using TV sets to save stone in the choices driven
Low degree of High degree of
appliances vs paint and costs bathroom by functional
integrated heavy use of over aesthetic
appliances wallpapers sensibilities
Flexible with cost Rigid with
overruns cost overruns service providers and fear of paying more than contractors and harmony in overall look
market value • Pressures of managing reno work too
demanding and best to go with branded,
| 63
integrated solutions

Offline retail stores offering
Multiple stakeholder Franchisee stores in regional
packaged solutions
management pockets
Ad-hoc material demands by
Competitive pricing and good mix Lead-gen partnerships with local
service provider
of budget & premium offerings builders in regional pockets
Cost and timeline overruns
On-demand involvement in Lead gen partnerships with mid-
Lack of design support from material purchases sized brokers in key micro-markets
service provider
Lack of after-sales services Availability of cash payment print media like newspapers
from service provider option
New E
Delhi
packages with
minimal ‘plug
and play’
/ shorter
customization
• Lead-gen partnerships warranty periods
options and • Gurgaon: Sector 54
with local builders and to save costs
subsequent • Delhi: Rajouri Garden, Gautam Nagar, Tilak
brokers in select
quote generation
micro-markets Nagar, Janakpuri, Shubhash Nagar
• Noida: Noida Extension | 64
market (2/2)
experience
D 23% 18% 3% 16%
G 5% 5% 3% 48%
N 10% 2% - 46%
5 Customer personas deep dive: Public sector employees
Age: 40-60 years

• Small families typically comprising of customer, spouse and 1-2 adult children
Legacy & • Depend on kids for facilitating key purchases and seek their inputs on key matters
Annual HHI: INR 15-50L family • Largely traditional – prize functionality and value for money over aesthetics but
kids may influence behavioral change
Family size: 2-4
• Educated; current and ex mid-senior level officials in government allied bodies
• Value job security, limited uncertainty, steady income and growth and are hence,
Education &
typically in same organization for 10+ years
profession • Kids either pursuing higher education or are service class professionals and often
settled in different city or country
• To invest in renovation and design home that is comfortable and enjoyable to stay
in post retirement
Goals • To be able to save enough for retirement and buy a house while working; look for
functional designs in home improvement
Free Busy

• Typically have limited inherited wealth and invest in 1-2 properties, land, and gold
Property &
during their lifetimes to maximize wealth and income
wealth • Have 1-2 cars in the value segment which is the primary mode of transport
• Generally do not live an indulgent life – take 1-2 trips annually to domestic
locations, often for religious purposes and prefer to stay indoors
Hobbies &
Illiterate Educated • Common hobbies and leisure activities include watching TV together, exercising
leisure and meditating, playing indoor games like cards, carrom, etc.
• Socially active and invite guests at place of residence multiple times in a month
Suspicious Trusting
scanner | 66
Reno type: Flats

Micro-market presence: Gurgaon, Delhi
• Typically look • Discovery • Key triggers: • Customer • Customer • No formal
Reno spend: 8-10%
for properties in process led by - Referral outsources accompanies agreement
Typical property value: INR 1.2-3Cr gated, sub- kids who can feedback design research contractor and access to
Preferred service provider: Sub contractors urban areas of introduce and track and during high after-sales
(71%) the city and options like record implementation value typically
Service provider NPS: -14% look through Livspace, - Use of high- to contractor purchases and painful and
independent HomeLane, etc. quality and gets buys loose long-drawn
brokers to parents materials at involved only furniture • If service
• For renovation, • Other sources competitive with décor and independently provider
seek include referrals rates furnishing • Tends to be unresponsive,
convenience • If feedback - Ease of choices moderately looks for local
and hassle-free positive, access to involved and contractors to
experience and inclination to after-sales typically makes fulfill after-
look for turnkey give project to services 1-2 visits per sales
Cash Digital solutions local contractor week requirements

involvement involvement • Semi-modular • Minor false • Solid wood • Use of basic, • Standard
or non-modular ceiling and furniture with local tiles designs with no
Low process High process kitchen with addition of traditional common customization;
involvement involvement laminate / fancy lights designs – thick across house customization
veneer finishes • Traditional legs, bulky, etc. but tendency to sought on
on wooden prints (floral, • Typically, no spend more on dimensions
sensitivity sensitivity cabinets geometrical, storage units or high-value only
• Traditional etc.) on walls designs with marble and • Designs
independent created using TV sets to save stone in the choices driven
negotiation negotiation appliances vs paint and costs bathroom by functional
integrated heavy use of over aesthetic
appliances wallpapers sensibilities
• Distrust in quality of materials used by local • Ideal to go with branded service providers with
service providers and fear of paying more than superior accountability and who offer material
market value transparency and speedy after-sales services
• Limited availability of budget offerings in market
with design and project management solutions
| 67

Integrated, one-stop value
Multiple stakeholder Franchisee stores in regional
offering
management pockets
Lack of visibility in materials Visibility of process / material
used purchase quality and price Lead-gen partnerships with local
builders in regional pockets
Offline experience centers
Cost and timeline overruns
and small retail stores Lead gen partnerships with mid-
Lack of design support from High commitment on sized brokers in key micro-markets
service provider timeline adherence
Lack of after-sales services Availability of cash payment print media like newspapers
from service provider option
• Promotion of • Preliminary • Only one point-
Livspace’s budget and of-contact during
value stores in timeline execution
print media estimation tool • Regular progress Central
and in all key on Livspace / material N
geographical website and at updates to NE Delhi
micro-markets offline stores customer
New E
Delhi
• Offline franchisee • Warranties and

stores in down-market structured post-
packages with
and mid-market areas sales packaged
minimal ‘plug
to build visibility solution against
and play’
one-time fee
customization
• Lead-gen partnerships • Annual contracts • Gurgaon: Sector 14, Sector 17
options and
with local builders and
subsequent
for maintenance, • Delhi: RK Puram, Moti Nagar, Sarojini Nagar,
brokers in select deep cleaning, Laxmibai Nagar, Rohini
quote generation
micro-markets etc. • Noida: Sector 46, Sector 100 | 68
market (2/2)
experience
D 23% 18% 3% 16%
G 5% 5% 3% 48%
N 10% 2% - 46%
6 Customer personas deep dive: Super affluent
Age: 35-50 years

• Family native inhabitants of Delhi and live in ancestral properties; may move to
Legacy & Gurgaon to be in more upscale locations
Annual HHI: >INR 3 Cr family • Inheritors of large-scale family businesses (e.g., real estate construction, logistics
handling, jewellery trading, etc.), top tier executives in MNCs, etc.
Family size: 3-6
• Typically educated – top tier executives tend to have gone to top graduate
Education &
schools, business owners have more varied levels of education, with the younger
profession generation often going abroad to pursue higher studies.
• To expand scale of business and establish a prominent brand in the market

• To maximize wealth for purposes of inheritance, investment and philanthropy
Goals • To incorporate global lifestyle standards, ideas picked up from extensive foreign
travels
Free Busy
• Typically inherit multiple high-end properties, some of which may be rented out for
incremental income
Property &
• Reside in premium property with median price of INR 10-15Cr
wealth • Own 3-4 cars in the luxury segment like Mercedes, Audi etc. which is the primary
mode of transport
urban areas of city and 3-4 foreign vacations annually
Hobbies &
Illiterate Educated • Common hobbies include reading, playing sports like golf, tennis and watching
leisure content on streaming platforms like Netflix, Amazon Prime, etc.
• Socialize and dine with close friends at high-end restaurants during the weekend
Suspicious Trusting
• Conscious about online activity and preference for small online circles; Instagram,
Collectivistic Individualistic Online Twitter preferred social media platform and Pinterest for design research
activity • Consume news online generally and subscribe to magazines like Architectural
Digest, Good Homes, etc. for design ideas
| 70
Reno type: All property types

Micro-market presence: Gurgaon, Delhi
• Typically look • Discovery • Key triggers: • Customer does • Typically all • Gets warranty
Reno spend: 10-12%
for properties in mainly through - Capability to heavy design material on major
Typical property value: >INR 8Cr prime locations referrals from import research and is purchases fittings,
Preferred service provider: ID firm (25%), ID + of city and close friends select very involved made by furniture, etc.
contractor (25%) discover and family; in furniture / during design service provider • No formal
Service provider NPS: 60% through mid- 35-45 age art-work process post design / agreement of
scale property group, online - Longevity of • Fewer design sample after-sales on
dealing firms channels like experience iterations, 1-2 approval by services but
• For renovation, Instagram, of handling generally, customer service
look for a Facebook and projects of allowed by • Low process providers focus
luxurious design premium service provider involvement, on fast TATs –
design portfolio, magazines like ticket sizes with 1-2 visits 24 hours or
and integrated, Good Homes, per week under
full-stack etc. dominant
offering
Cash Digital

involvement involvement • Inbuilt • Use of Italian • Custom-built • Replacement • Use of regal
countertop and marble, flexy furniture – of tiles with colors like royal
Low process High process appliances in stone, crystal tufted seating high-quality blue, purple or
involvement involvement kitchen for a chandeliers, with velvet marble / stone metal tones like
seamless look etc. common upholstery in select areas gold prominent
• Walk-in closets décor elements common in like common • Use of earthy
sensitivity sensitivity with wooden • Use of tinted sofas, area, bathroom and rustic
flooring mirror, glass headboards, • Use of high- tones used for
paneling, etc. bar stools, etc. end, branded accent walls
to hide storage tiles for accent
units, electrical walls, etc.
switches, etc.
• Mishandling of renovation job due to lack of • Better to hire service provider with not just a
overruns cost overruns experience with premium projects strong design portfolio but also a proven
• Apprehension about not getting transparent execution track record
BOQs and fear of paying substantial hidden costs | 71

Integrated, one-stop Video commercials
Lack of transparency in
premium offering highlighting Livspace’s key
initial BOQ and multiple
hidden costs High-end luxury designs with value prop
Timeline delays and superior customization options High tea events in premium
persistent follow-ups needed residential societies
High commitment on
Lack of flexibility with design timeline adherence Lead gen partnerships with
changes and unwillingness to property management firms
Detailed BOQ and
make reiterations
communication of all costs
Advertisements in leading
Lack of willingness to
premium design magazines
understand customer needs Superior customer empathy

• Only one point-of-
• Experience
• One stop contact during
centers in
visual content design and
upscale areas
platform for execution phase
to cater to Central
design and respectively
specific needs N
material • Polished and Delhi
of the super NE
education well-groomed
affluent class
project managers New E
Need Discovery Selection Design Execution Post sales Delhi
• Video commercials • Warranties and

• Collaborative
highlighting Livspace’s structured post-
designing process
delivery processes, sales packaged
with customers and
design portfolio, solution against
on-demand 3D
customer testimonials, one-time fee
visualization output
walkthroughs, etc. • Annual contracts
• Scientific allocation • Gurgaon: DLF Phase 1-5, Sushant Lok, Golf
• High tea events in for maintenance,
of IDs after initial Course Road, Sushant Lok, Ambience Island
premium residential deep cleaning,
societies
customer profiling
etc. • Delhi: Defence Colony, Safdarjung Enclave,
| 72 1
Prashant Vihar, Sainik Farms, Greater Kailash
market (2/2)
experience
D 23% 18% 3% 16%
G 5% 5% 3% 48%
N 10% 2% - 46%
7 Customer personas deep dive: Investors / landlords
Age: 40-60 years • Mid-large size families consisting of customer, spouse, 1-2 kids, and their
spouses, grandkids, etc.; family almost always native inhabitants of Delhi NCR
Legacy &
Annual HHI: >INR 40L While business owners rent properties from an investment perspective, public
family servants may rent property intended for self-consumption after retirement for
incremental income
Family size: 3-6
• Small-mid sized traditional family businesses in retail, trading, manufacturing etc.
– while younger generation may lead day-to-day operations, key organizational
Education &
decisions rest with original inheritors / proprietors of the business; women typically
profession homemakers
• Professional / employees with income > INR 75L might buy second property
• To maximize earnings through rentals, continuously upgrade standard of living

and to accumulate wealth that can be passed upon to the next generation
Goals • To earn goodwill and become an important and well-respected member in social
circles
Free Busy
Tech challenged Tech savvy • Typically inherit one or more ancestral properties and look to invest in gold, land,
Property & properties to accumulate wealth and get steady rental income
wealth • Look to invest in new flats and builder floors in urban centers in city to attract
maximum rental yield with properties valued at INR 75L and upwards
• Have a large circle of friends, family and leisure time dominated by socializing
Illiterate Educated
Hobbies & events; other leisure activities include watching television, exercising, etc.
leisure • Take 1-2 vacations annually, typically to domestic sites and frequently for religious
purposes
Suspicious Trusting
scanner | 74
New flats and
Reno type:
builder floors
• Invests in • If experience is • Key triggers: • Design- • Customer • No warranty on
Reno spend: 4-5%
renovation only positive, - Most agnostic and typically makes items built on
Typical property value: >INR 75L to leverage best typically goes competitive goes for all high-value site like kitchen,
Preferred service provider: Turnkey value from the for vendor costing and standard and critical wardrobes, etc.
contractor asset customer has timeline budget options purchases • If service
Service provider NPS: -10%
• Looks for worked with in estimates • Looks for himself but provider
budget-friendly past to shorten - Ease of durable but leaves rest to sourced locally,
discovery time access to cheap designs contractor easier to get
options with
• Other sources after-sales for advantage • Tends to not be after-sales
minimal day-to-
include referrals services of longevity and very involved – since the
day from family, - Referral compromise on makes 1 visit in service provider
involvement neighbors, local feedback, brands not per week aims to
vendors and relationship critical to typically to maintain
material stores and prior functionality ensure timely reputation
experience completion
Cash Digital

involvement involvement • Simple, semi- • Cost-effective • Typically all • Use of • Use of cheap,
modular choices; for appliances and unbranded tiles low-
kitchen e.g., use of loose furniture but branded, maintenance
involvement involvement • Functional shower purchases low-cost fittings materials like
drawers in curtains made by and laminates most
kitchen and instead of tenants directly sanitaryware in commonly
wardrobes shower cubicle, bathroom used
use of • Use of branded • Provision of
laminates but low-cost maximum lofts
Low degree of High degree of against wood electrical for space
for flooring, etc. fittings, etc. utilization
Flexible with Rigid with Inhibitions pre-service provider selection Learnings post execution
timelines timelines
• Apprehension about inferior quality of materials • More frequent site visits to ensure tighter grip on
used by local contractors and subsequent cost execution and avoidance of inadvertent cost and
Flexible with cost Rigid with of rework timeline delays
• Delay in timelines by contractor to extract
monetary benefit and subsequent loss of rental
| 75
income

Integrated, one-stop value Lead-gen partnerships with
Multiple stakeholder
offering local builders and brokers in
management
Packaged solutions with pre- key geographical cohorts
Cost overruns and lack of
price transparency agreed upon prices
High commitment on Partnership with local
Timeline delays contractors to work on a
timeline adherence
revenue-share model
Lack of useful design No-frills, packaged solutions
assistance from contractor with standardized designs Offline franchisee stores
Lack of transparency in Extensive range of materials offering packaged solutions
materials used and power to customize
New E
Delhi
packages with
minimal ‘plug
and play’
/ shorter • Gurgaon: Golf Course Road, Gold Course
customization
• Lead-gen partnerships warranty periods Extension Road, Sohna Road, Central Park 2,
options and
with local builders and to save costs
subsequent Sector 48
brokers in select
micro-markets
quote generation • Delhi: Saket, Paschim Vihar, Sarita Vihar,
Mayur Vihar-I | 76
Source: Primary research, Praxis analysis • Noida: Sector 137, Sector 168, Sector 78
Agenda
Inventory & Demand

overview

Value prop & survey
Services Supply
overview overview
| 77
Delhi NCR has a few online end-to-end players but has a strong offline market
Appliances, sanitaryware,
Modular kitchen and wardrobe Furniture, furnishings and décor Services and others
flooring, paint
Marketplace Classifieds
Self-led brands Service platforms

Online
End-to-end home improvement service providers (managed home improvement solutions)
Horizontal e-commerce retail Content & design platforms
End-to-end contractor and interior designers
Modular kitchen brands Furniture & furnishing brands Appliances Service brands
Retail
Offline
Sanitaryware & flooring
Large format retail

Modular hardware manufacturers Paint
| 78
Source: Secondary research, Praxis analysis
Majority of the fitted furniture & lighting is manufactured locally; fitted & loose
furniture, flooring have high man. fragmentation
1 2 3 4
Bathroom fittings &
Fitted furniture Loose furniture Flooring
sanitaryware
• Marbles
• Imported from Italy
• IDs and contractors with
• Domestic from
• IDs & contractors with own own factories
• Local Indian manufactures Rajasthan
factories • Local Indian manufactures
(branded & unbranded) • Granite
• Local Indian manufactures (branded & unbranded)
• International brands • South India
(branded & unbranded) • Organized players
manufactured in India • Tiles
• Imported from abroad and importing from abroad and
Manufacturing • International brands • OEMs for org. retail
sold under their own brand selling under their own
imported to India • Domestic from Morbi
• Local carpenters brand
• Importing from China and • Imported from Spain,
• OEMs for org. retail • OEMs for org. retail
selling under their own Italy and China
• OEMs for org. retail • Local carpenters
brands • Wooden flooring
• Online stores and furniture
• Imported
stores
• Domestic brands
• Actual wood
• Distributors
• Retail (Local & Organized) • Retail (Local & Organized) • Organized dealer
Distribution • Organized dealer
• IDs & contractors • IDs & contractors • Local dealer
• Local dealer
Manufacturing
High High Low High
Fragmentation
Branded 15% 9%
Unbranded 45% 35%
85% 91% 55% 65%
Aggregate gross
50 – 60% 55 – 65% 30 – 40% 30 – 40%
margins
Average discount
offered to the 10 – 15% 20 – 25% 15 -25% 15 – 20%
customer
Note: *Aggregate gross margin is the margin in distribution channel excl. OEM margins
| 79
Paint industry is very organised; home textiles is fragmented; appliance
import is sizeable
5 6 7 8
Paint Lighting Appliances Home textile
• Local Indian manufactures
• Local Indian manufactures
(branded & unbranded) • Local Indian manufactures
(branded & unbranded) • Local Indian manufactures
• Indian players importing (branded & unbranded)
• Indian players importing (branded & unbranded)
from abroad (China) and • Indian players importing
from abroad (Italy and • Indian players importing
selling under their own from abroad and selling
Greece) and selling under from abroad (China) and
brand under their own brand
their own brand selling under their own
• Manufactured by local • Manufactured by local
Manufacturing • Manufactured by local brand
players and marketed by players and marketed by
players and marketed by • International brands
branded players branded players
branded players manufactured in India
• International brands • International brands
manufactured in India manufactured in India
manufactured in India imported to India
• International brands
imported to India imported to India
imported to India
• Distributors
• Organized dealer • Distributors • Distributors
• Retail (Local & Organized)
Distribution • Local dealer • Retail (Local & Organized) • Retail (Local & Organized)
• Dealers / channel partners
• Single brand outlets • Single brand outlets • Single brand outlets
• Galleries
Manufacturing
Low Low Low High
Fragmentation
12%
35% 35% 28%

Branded
65% 65% 88%
Unbranded 72%
Aggregate gross
5 – 10% 30 – 40% 40 – 50% 40 – 50%
margins*
Average discount
offered to the 0 – 2.5% 10 – 20% 15 – 25% 10 – 15%
customer
Note: *Aggregate gross margin is the margin in distribution channel excl. OEM margins | 80
1 BOQ deep dive: Fitted furniture
Manufacturing Distribution Retailer / dealer Customer
Fitted furniture
Contractor (factory or carpenter) driven
Large institutional
Local retailer
Small unorganised buyers/ builders
Supply chain factories of local retailers
IDs &
Own factories / OEMs of contactors
organised retailers in India
Customer
Organised
retailer
Furniture imported from foreign factories Share in the market
Manufacturing Aggregate gross 15%
High 50 - 60%
fragmentation margin
85%
Major players
Branded Unbranded
Cost buildup for BOQ element
Furniture factory Distributor Retailer / dealer ID / contractor Customer
100
80 30
55
60 25
40 70
20 45 45
0
Furniture factory Distributor Dealer ID / contractor Customer
x x
Landed cost Gross margin
| 81
2 BOQ deep dive: Loose furniture
Loose furniture
Contractor (factory or carpenter) driven
IDs & contactors
Small unorganised factories of Local retailer
local retailers
Supply chain
Customer
Own factories / OEMs of Organised retail
organised retailers
Local retailer selling imported

Furniture imported from foreign countries furniture Share in the market
Manufacturing Aggregate gross 55 - 65%
9%
High
Branded Unbranded 91%
Major players
Branded Unbranded
Evok imports furniture
Cost buildup for BOQ element from Malaysia and sells it
under its brand name
Furniture factory Distributor Retailer / dealer ID / contractor Customer
100 10% cut of the dealer’s margin

is given to the ID / contractor
80 for lead generation
35
62
60
27
40
65
20 38 38
0
Furniture factory Distributor Dealer ID / contractor Customer
x x
Landed cost Gross margin
| 82
3 BOQ deep dive: Bathroom fittings and sanitaryware
Manufacturing Distribution Retailer Customer
Bathroom
fittings
IDs & Large institutional buyers/
contactors builders
Own factories of OEMs Organized player Distributor Dealers
Supply chain warehouse
Branded sanitaryware imported

Customer
Small dealers
Small unorganised factories
Share in the market
Manufacturing Aggregate gross
Low 30 - 40%
fragmentation margin 45%
55%
Major players
Branded Unbranded
Cost buildup for BOQ element Kohler does not have distributors
in its supply chain
Indian OEM Distributor Retailer / dealer ID / contractor Customer
All international players give a

margin of ~35% to its dealers to win
against well established Indian
100 players by offering a better discount
in the highly competitive market. 25 35
80
10
60
30 30
40 75
65
20 35 35
0
OEM Distributor Dealer / retailer ID / contractor Customer
Landed cost Gross margin of OEM Gross margin

| 83
4 BOQ deep dive: Flooring
Flooring
contactors builders
Imported tiles
Customer
Small dealers
Share in the market
Manufacturing Aggregate gross Imported: 70 - 90%
High Domestic: 30 – 40%
65%
Major players
Branded Unbranded
100
25 35
80
10
60
30 30
40 75
65
20 35 35
0
OEM Distributor Dealer ID / contractor Customer

| 84
5 BOQ deep dive: Paint
Asian paints has 6

Paint warehouses
across Delhi Large institutional buyer/
builder
ID &
Own factories / OEMs of Dealer
Organized player contactor
organised retailers
Small unorganised factories of

local retailers Local paint dealer Customer
Local retailer selling imported
Paint imported from foreign countries furniture Share in the market
Manufacturing Aggregate gross 5 – 10%
Low
65%
Major players
Branded Unbranded
Paint industry is a low Also, a high profit is

100 margin but high ROI earned by tinting the
industry
6 paint (making shades) 6
80 16 according to the 16
customer
60
94
40 78 78
20
0
Target country OEM Distributor Dealer ID / architect / Customer
x contractor
Landed cost Gross margin OEM Gross margin x
| 85
6 BOQ deep dive: Lighting
Lighting
Large institutional buyer/
Own factories of OEMs Super stockists Distributor Local retailers builder
Supply chain
Lights imported from foreign
countries (mostly China) IDs &
Organized players Dealer gallery/ contactors
have local
vendors
vendors
from display centres Customer
China
for aorparticular
India for a
particular
product
product Small unorganised factories
Share in the market
High
65%
Major players
Hybec is not available in retail shops. It Branded Unbranded

Cost buildup for BOQ element only does project sales through its
channel partners (dealers).
Decorative lighting have

abnormally high margin
100 which is not included in
25 this. For decorative
35
80 lighting it can range from
10 60 - 200%.
60 20 20
40 75
65
20 45 45
0
OEM Distributor Dealer ID / architect / Customer
contractor
Landed cost Gross margin OEM Gross Margin
| 86
7 BOQ deep dive: Kitchen appliances
Appliances
contactors builders
Most organized Mostly products like

Imported from foreign countries kitchen sinks,
players have Customer
(mostly China) chimneys are made
vendors from
China by such players Small dealers
Small unorganised factories Share in the market
High
72%
Major players
Branded Unbranded
OEM Distributor Retailer / dealer ID / contractor Customer
100
80 35 42
60 7
20 20
40
58 65
20 38 38
0

| 87
8 BOQ deep dive: Home textile
Manufacturing Distribution Retailer Customer
Home textile
Large institutional buyers/
Organized retailer shop builders
Own factories of OEMs Organized player Distributor
Organized players have warehouse
Supply chain local vendors for a particular
Dealers Customer
product
Small retailer shop

Share in the market
Manufacturing Aggregate gross 40 – 50% 12%
High
88%
Major players
Branded Unbranded
100
80 32 42
60 10
20 20
40
58 68
20 38 38
0
Landed cost Gross margin OEM Gross Margin

| 88
Agenda
Inventory & Demand

overview

Value prop & survey
Services Supply
overview overview
| 89
We have identified 5 project archetypes depending upon service provider
1 Turnkey contractor led 19% 2 Interior designer led 8%
Customer Customer
archetypes
Project
Contractor Interior designer
Online Unorg. Interior Own / 3rd Furniture Unorg. 3rd party Sub
furniture store retail designer party factory factories retail supplier contractor
Type of houses • Apartments, builder floors • Apartments, builder floors, villas
• Government professionals
• Shopkeepers, large business owners, small business
General personas • Corporates, high end professionals and Investors
owners
• Large business owners
• FHD • FHD
Type of work
• PHD – F&D or KWS • PHD – F&D or KWS
3 Contractor + ID led 14% 4 Self led 41% 5 Fulfilled from retail 18%
Customer Customer Customer

archetypes
Project
Interior
Contractor
designer
Organized Unorg. Own / 3rd Designer / Unorg. Sub

retail retail Retail / KnW stores
party factory architect retail contractor
Type of houses • Flats, builder floors, villas • Flats, builder floors, villas • Flats
General • Large business owners, high end • Small business owners, gig economy workers
• All type of customers
personas professionals and retired professionals
• FHD
Type of work • PHD – F&D, Paint, Curtain, Wallpaper • PHD – KWS or F&D
• PHD – F&D or KWS
X% - Market share |by90

volume
We see 4 major archetypes of players in interior design companies
Small ID Medium ID Large ID
Freelancer company company company
Example
Number of projects / year 3–5 7-10 10-15 20-30
Typical ticket size (USD K) 5 – 10 20-30 40-60 80-120
Typical revenue (USD K) 30-60 175-250 500-800 2,000 – 3,000
Typical revenue (INR Cr.) 0.3 – 0.5 1–5 7 - 11 12 - 21
Designers 1–2 5 7 16
Architects - - 5 10
Employees
Others - 2 5 15
Total 1-2 5-8 15 – 25 30-50
Avg. years of
1–4 5 – 20 10 – 30 20 – 30
experience
Personas
Typical Degree, diploma holders or 2 Degree, diploma holders or 2 Degree holders or 2 to 4
Degree or diploma holders
qualifications years of experience to 4 years of experience years of experience
Referrals 0
10% 10% 15%
Lead 40%
Online 25% 20% 10%
generation
60%
Walk-in 65% 70% 75%
Residenti Retail ✓ ✓ ✓ ✓
Projects
al Institutional   ✓
Commerc Small ✓ ✓ ✓
ial Large   ✓
• Modern SME owners
• Business owners • Large business owners • Large business owners
Type of retail customers • Modern SME owners
• Professionals / govt. • Investors & corporates • Investors & corporates
individuals
Retail ✓ ✓ ✓ ✓
Sourcing of raw
Supplier ✓ ✓ ✓ ✓
material
Factory 
| 91
Source: Primary research, Praxis analysis ✓ Yes Sometimes  No
Small ID company: majorly sourcing happens from retail stores and furniture
factories; has ~7-10 people; lead gen is majorly through referrals
Fulfilment of project Organisation structure (n=7)
Online through aggregator

Tiles Loose platform / social media
Retail / Franchise
furniture Report to owner

Fittings Appliances Fitted
furniture Referrals
Paintings
Carpet & artefacts IDs (n=2) Architect (n=1)
Wallpaper Curtain • Focus on retail residential and
small commercial projects Walk-ins
• Usually there are 5 to 10 Project Accountant
Lightings Electricals Paint employees including 2-3 designers manager (n=3) (n=1)
• Some have architecture
capabilities
Floor plan
Distributor
Paint Fitted Loose

furniture furniture submission
Products
1 week
Windows & Discussion and
Fittings Tiles Senior contractor
ventilators scope finalisation
3-4
weeks
Factory
3D design/
Moodboard Petty
Loose Fitted Doors & Labour
furniture windows 1-2 contractor
furniture
weeks
Technical Plumber Flooring
drawing
Tiler Painter Plumber
Painter Carpenter
Project initiation
3-6 Window
months
Electrician
Electrician Carpenter Hacker contractor
Services
Quality check
False Property
Labour Door
ceiling handover
Customer
| 92
Source: Primary research, Praxis analysis Permanent employees 3rd party
Medium ID company: majorly sourcing happens from retail stores and furniture
factories; has ~15-20 people; lead gen is majorly through referrals
Online through own website

Tiles Loose or social media
furniture Report to owner
Fittings Appliances Fitted
furniture
Retail
Referrals
Paintings
Carpet & artefacts IDs (n=7) Architect (n=3)
Wallpaper Curtain • Focus on retail residential and
commercial projects Walk-ins
• Usually there are 15 to 20 Project Accountant
Lightings Electricals Paint employees including 7 designers manager (n=3) (n=1)
• Some have architecture
capabilities
Admin (n=2)
Distributors
Fitted Loose Floor plan

Paint
furniture furniture submission
Products
1 week
Windows & Discussion and
Fittings Tiles Senior contractor
ventilators scope finalisation
3 weeks
Factory
3D design/
Moodboard Petty
Loose Fitted Doors & Labour
furniture windows
contractor
furniture 1 week
Technical Plumber Flooring
drawing
Painter Carpenter
Project initiation
3-6 Window
months
Electrician
Electrician Carpenter Hacker contractor
Services
Quality check
False Property
Labour Door
ceiling handover
Customer
| 93
EBIDTA for a medium sized ID firm doing 12-15 projects / annum is ~18%
- 20%; major revenue sources are flats and builder floors
Yearly economics for small ID firm (INR L, 2019)
36
103
95
246 37
210
49
143
115 115 106 4 4 1 1
57 52 48 47 46 46
Builder Apartments Villas Total Material Labour Salary Rent Marketing Electricity Misc. EBITDA
Floor revenue cost
%age split
47 39 14.5 100 42 15 20 1.8 1.8 0.4 0.4 19
Observations Avg. ticket size

Type of project #
(INR L)
• Builder floors account for ~50% of revenue, villas for ~10%;
bigger ID companies focus more on villas and smaller ID Villas 1 36
firms do more of builder floors / apartments Apartments 7 13
• Small ID firms typically employ 10-15 employees on payroll;
contractor work is outsourced Builder floors 5 23
Total 13 19
| 94
EBITDA for a large ID doing 55-60 projects per year is ~20% - 22%;
commercial projects and villas are major source of revenue
Yearly economics for large ID firm (INR L, 2019)
242
770
396
595 1,833 275

1,591
1,195 302
1,063
46 41
788 18.0 4.5
600
486 440 399 381 376 376
Commercial Villas Builder Flats Total Material Labour Salary Marketing Rent Electricity Misc. EBITDA
Floors revenue cost
%age split
33 32 22 13 100 42 15 16.5 2.5 2.3 1 0.2 21
Observations Avg. ticket size

Type of project #
(INR L)
• Builder floors account for 28%; villas 24% by volume; Commercial 12 50
majority of revenue comes from commercial projects
Villas 14 42
• Large ID firms typically employ 30-50 employees on payroll;
contractor work is outsourced Apartments 16 15
• Typically, they make 20% - 25% EBITDA margin Builder floors 16 25
Total 58 32 | 95
We see 4 major archetypes of players in contractor companies
Segment based Small Medium sized Big contractor
contractors contractors contractors firms
Number of projects / year 10 – 15 10 - 15 10 - 15 10 - 30
Typical ticket size (USD K) 2 – 10 10 – 80 100 – 1000 700 – 3,000
Typical revenue (USD K) 30 – 90 70 – 700 1,400 – 5,000 7,000 – 11,000
Typical revenue (INR Cr.) 0.2 – 0.6 0.5 – 5 10 – 35 50 – 80
Site supervisor 1 5 10 10
Designers - - - 4
Employees Engineers - - 2 5
Others 2 4 8 25
Total 3-5 8 - 10 20 - 25 44 - 50
Avg. years of
Personas 2 – 10 2 – 15 10 – 30 20 – 40
experience
20% 10% 10% 20%
Referrals
Lead
Online
generation
Tenders 80% 90% 90% 80%
Residenti Retail ✓ ✓ ✓ ✓
Projects
al Institutional  ✓
Commerc Small ✓ ✓ ✓
ial Large    ✓
• Modern SME owners

• Modern SME owners • Business owners • Large business owners • Large business owners
Type of retail customers
• Business owners • Professionals / govt. • Investors & corporates • Investors & corporates
individuals
Retail ✓ ✓  
Sourcing of raw Distributor ✓ ✓ ✓ ✓
material
Factory /
 
company
✓ Yes Sometimes  No | 96
Sources: Primary conversations, Praxis analysis
Small contractors: They majorly source from retail stores, have ~10 people on
payroll
Online through aggregator

platform / social media
Fittings Appliances Fitted Report to owner
furniture
Referrals
Site
Retail / franchise
Tiles Loose supervisors Plumber (n=1)

furniture • Their focus is on interior turnkey (n=5)
residential projects
• Usually there are 8 to 10 Carpenter (n=2)
Lightings
Paint salaried employees including
Electricals 5-6 site supervisors
Painter (n=1)
• There are no engineers
Products
Windows & Drawing

Hardware
ventilators Petty contractor
Carpenter
Material purchase
driven
Glass
Fitted Loose Labour
furniture
contractor
furniture
Labour
5-6 Plumber Flooring
acquisition
months
Painter Carpenter
Project initiation
Electrician
Electrician Carpenter Hacker
Services
Quality check
False
Labour Door
ceiling Property
handover Customer
| 97
EBITDA for a medium contractor doing 10-15 projects per year is ~14 -
16%; apartment towers are the major source of revenue
Yearly economics for medium contractor (INR L, 2019)
600
1,528
608
3,308
595
2,708
2,100 2,100 290
1,780 200
1,185 30 30 150
895 695 665 635 485 485
%age split
64 18 18 100 46 20 9 6 1 1 5 15
Avg. ticket size

Observations Type of project #
(INR L)
• Builder floors account for 33%; villas ~40% by volume; Apartments 3 700
majority of revenue comes from making apartment towers Builder floors 4 152
• Medium contractor firms typically employ 20-25 employees
on payroll consisting of engineers and site supervisors; most Villas 5 120
labourers are outsourced Total 12 -
• Typically, they make 14 - 16% EBITDA margin
| 98
Agenda
Inventory & Demand

overview

Value prop & survey
Services Supply
overview overview
| 99
Market definition: We have covered exhaustive categories within the
considered definition but excluded builder led, repair / maintenance
Element Included in market sizing Not included in market sizing
Customer Residential (all locations within Delhi NCR) – Delhi, Gurgaon and Noida Commercial Industrial
type
Household
Townhouse Condominium Detached house Offices / Shops / Factories
type
Occasion New Resale + Reno (incd. reno before leasing) Buy / Rent / Lease
• Bare flat: Entire renovation of the units including services and F&D • Repair and maintenance
• Semi furnished: Minor work on services, spend focused on F&D items services
• Fully furnished: Minor spend on F&D, negligible to no spend on services • Minor professional services
• FHD (Full home design): Renovation of the entire house including living room, bedrooms, projects (Eg - electric
Scope kitchen, bathroom etc. installations, basic carpentry,
• PHD (Partial home design): Renovation of a part of the house only (Examples -. Renovation minor plumbing etc.)
work only in one bedroom; Renovation only in the living room with) • Regular retail purchase without
• Services / FL (Facelift): Low-ticket size interior work that could include any mix of furniture, any event
services and décor; typically does not involve masonry / hacking
Service • Designers / • Institutional (provided by • Service providers like carpenters /
providers contractors the developer) / self painters
• Modular furniture • Services • Décor & HI • Installation equipment (power
(KWS) − Hacking − Wallpaper drills, measuring devices, nut
• Loose furniture − Dismantling & − Carpets & furnishing drivers, nail guns, pipe cutters,
− Chairs & seating disposal − Lighting etc.)
− Sofa − Tiles − Appliances
− Tables − Painting − Hob & chimney
− Beds, − Glass / window / − Fans
mattresses & metal − Water purifier
BoQ
bedding − Flooring − Geysers
categories
− Polishing − Microwaves / ovens
− Electricals − Bath fittings
− Plumbing − Sanitaryware
− Carpentry − Air conditioners
− Masonry
− False ceiling
− Labour (for relevant
tasks) | 100
Market size for Delhi NCR turnkey, renovation and home market (retail) is US$
2.1B
New home market Renovation market
Renovation Renovation
Volume Market Volume Market
spend spend
Unit # US$ K US$ M Unit # US$ K US$ M
Type of home Type of home
Flat 28,063 8 238 Flat 69,713 7 489
Bare shell 21,543 10 209 FHD 18,395 14 253
Semi furnished 4,890 5 26 PHD/KnW 23,873 7 164
Fully furnished 1,630 2 3 FL 27,445 3 71
Builder Floor 3,662 9 33 Builder Floor 58,786 8 475
Bare flat 625 16 10 FHD 17,575 14 251
Semi furnished 2,487 8 21 PHD/Knw 25,271 7 178
Fully furnished 549 3 2 FL 15,939 3 46
Villa 1,907 16 31 Villa 68,679 12 856
Bare shell 1,650 18 29 FHD 20,543 22 447
Semi furnished 132 11 1 PHD/KnW 30,759 11 333
Fully furnished 126 4 1 FL 17,376 4 76
New home TAM 33,632 9 302 Renovation TAM 1,97,178 9 1,820
Retail renovation market (US$ B, 2018) 2.12
Location New inventory Flat Builder Floor Villa Location New inventory Flat Builder Floor Villa
Key assumption
Bare shell 60% 25% 70% FHD 30% 30% 30%

Delhi Semi furnished 30% 60% 20% Delhi PHD/Knw 40% 45% 40%
Fully furnished 10% 15% 10% FL 30% 25% 30%
Bare shell 60% 15% 80% FHD 20% 30% 30%
Gurgaon Semi furnished 30% 70% 10% Gurgaon PHD/Knw 20% 30% 45%
Bare shell 80% 15% 90% FHD 15% 25% 20%
Noida Semi furnished 15% 70% 5% Noida PHD/Knw 20% 25% 50%
Source: Primary research, government data, secondary research, Praxis analysis
Delhi NCR TAM is approximated to be US$ ~2.1B, validated using
multiple approaches
NCR Delhi turnkey, renovation and home interiors market (US$ 2.1B)
US$ 2.4B US$ 2.3B

US$ 2.1B US$ 2.0B US$ 2.1B
US$ 1.5B
Approach 1 Approach 2 Approach 3 Approach 4 Approach 5 Praxis estimate

◑ ◑ ◑ ◕
Approach-1: TAM= New home market ( # units sold in 2018 across different furnish levels x average renovation spend by value of
home and type of home) + Renovation market ( # units sold in across different years x average home renovation
spend by type of home, type of renovation (FHD / PHD / FL) and value of home)
Approach 2:Singapore Turnkey, renovation and home interiors market as a % of Singapore GDP x (NCR GDP / Singapore GDP)
Approach-3:Australia Turnkey, renovation and home interiors market as a % of Australia GDP x (NCR GDP / Australia GDP)
Approach-4:USA Turnkey, renovation and home interiors market as a % of USA GDP x (NCR GDP / USA GDP)
Approach-5: Supply side: Delhi NCR residential tiles market / % BoQ spend on tiles
Relevance
Note: Delhi NCR includes Delhi, Gurgaon, Noida and Greater Noida
Low
○◔ ◑ ◕ ● High | 102
Delhi NCR is a US$ 2.1B market; villas account for ~42% of the market;
45% of the market is FHD; Delhi contributes 75% of total TAM
Delhi NCR TAM (US$ 2.1B, 2018)

US$ 2.1B US$ 2.1B US$ 2.1B US$ 2.1B US$ 2.1B US$ 2.1B US$ 2.1B
FF, 0%
SF, 2% Design, 5%
Noida, 12% Noida , 12% Retail, 10%
New, 14% Bare Shell,
Builder Floor, 12% DHI, 11%
24%
Gurgoan, 13% Gurgaon , 13% FL, 9% ID, 15%
Loose Furniture, 17%
Central, 4%
East, 7%
PHD/KnW, Self led, 21%
West , 10% Flat, 34% 32%
Fitted furniture, 33%
North, 25% Renovation, 86% Contractor + ID, 24%

Delhi, 75%
Villa, 42% FHD, 45%

Services, 35%Turnkey contractor,
South, 29% 30%
Region Micromarket Housing type Ocassion Scope of work BoQ Service provider*
Note: FF: Fully furnished, SF: Semi furnished | 103
Delhi is the biggest market in Delhi NCR, South Delhi is the biggest
market within Delhi
Delhi TAM (US$ 1.6B, 2018)
US$ 1.6B US$ 1.6B US$ 1.6B US$ 1.6B US$ 1.6B US$ 1.6B US$ 1.6B
New, 1%
FL, 4% Design, 5%
Central, 10% Retail, 11%
DHI, 11%
Flat, 25%
East, 10%
ID, 14%
Loose
PHD/KnW, 35%
West , 13% Furniture,
17%
Self led, 23%

Builder Floor, 26%
North, 33%
Delhi Renovation, 99% Fitted furniture, 33%
Contractor + ID, 24%
FHD, 60%
Villa, 50%
South, 39% Services, 35% Turnkey
contractor,
30%
Region Micromarket Housing type Ocassion Scope of work BoQ Service provider*
Gurgaon (13% of overall TAM) is the 2nd biggest market in Delhi NCR;
dominated by renovations (69%)
Gurgaon TAM (US$ 272M, 2018)

US$ 272M US$ 272M US$ 272M US$ 272M US$ 272M US$ 272M
FF, 1%
Design, 5% Retail, 8%
SF, 9%
DHI, 11%
Villa, 28% New, 31%
ID, 19%
Bare Shell, 21%
Self led, 16%

FL, 12%
Builder Floor, 33%

Gurgoan Fitted furniture, 33%
PHD/KnW, 20%
Renovation, 69%
Flat, 39% FHD, 36% Services, 34% Turnkey contractor,

31%
Region Housing type Ocassion Scope of work BoQ Service provider*

Noida is the smallest micro market in Delhi NCR; has the highest
proportion (82%) of new units; 89% is flats
Noida TAM (US$ 250M, 2018)

US$ 250M US$ 250M US$ 250M US$ 250M US$ 250M US$ 250M
Builder Floor, 4% FF, 1% Design, 4%
SF, 8% Retail, 8%
Villa, 7% DHI, 9%
ID, 19%
Self led, 19%

New, 82%
Bare Shell, 74%
Noida, 250 Fitted furniture, 35%
Flat, 89%
FL, 5% Services, 31% Turnkey contractor,

29%
Renovation, 18% PHD/KnW, 5%
FHD, 7%
Region Housing type Ocassion Scope of work BoQ Service provider*

Contractors + IDs and IDs fulfil ~22% projects by volume and ~40% of
projects by value
Market distribution by volume Total ~231K Market distribution by value Total ~US$ 2.12B
~98K ~71K ~62K ~US$ 727M ~US$ 508M ~US$ 887M
100% 100%
7% 9%
10%
14%
90% 20% 17%
90% 12%
15% 15%
80% 80%
22%
15%
70% 70% 26% 27%
21%
23%
60% 60%
21%
23%
50% 16% 50%
14%
40% 29%
40% 34%
16%
30% 30%
45% 8%
39% 40% 20%
20%
7%
26%
20%
10% 10%
13%
0% 0%
Flat Villa Builder Floor Flat Villa Builder Floor
Fulfilled from Turnkey contractor

Self led Contractor + ID ID led
retail led
| 107
Source: Source: Primary interactions, Praxis analysis
Contractor + ID and ID led fulfils ~40% of FHD projects; IDs are involved
majorly in FHD & PHD projects
Market distribution by volume Total ~231K Market distribution by value Total US$ 2.12B
~80K ~87K ~63K US$ 1,199M US$ 723M US$ 199M

100% 100%
9%
14% 13%
90% 90% 19%
13% 35%
34%
80% 80%
18%
25%
70% 70%
22%
32%
5% 9%
60% 60% 20%
50% 29%
50%
21%
40% 40%
27%
35%
30% 60% 30%
57%
20% 20%
32%
35%
23%
10% 10%
14%
0% 0%
FHD PHD / KnW FL FHD PHD / KnW FL
Turnkey contractor Fulfilled from

Self led Contractor + ID ID led
led retail
| 108
Source: Primary interactions, Praxis analysis
Underlying SAM for Delhi NCR is US$ ~1.31B (~62%); AOV is US$ 14K
Noida is majorly new market; Delhi is dominated by Livspace can cater to US$ ~1.31B (62%)
reno; majorly FHD projects (60%) are serviceable market in Delhi NCR
TAM split by property type Market size components
US$ B 0.27 1.6 0.25 US$ B
Reno
6%
4%
8%
42%
59%
Reno Reno
0.54
8% 64%
New
19%
14%
0.27
25% 0% 1%
New 26%
1% New 1% 17%
5% 0%
2.12
Serviceable
TAM split by project type Future serviceable 1.58
US$ B 0.27 1.6 0.25 Non serviceable 1.31 1.31
FL 6%
FL 13% FL 9%
PHD / 10% 1%
KnW
PHD / 27% PHD / 31% 2%
KnW KnW
2% 0% 5% TAM Non Future SAM
2% 61% serviceable serviceable
41% 28%
FHD FHD FHD
AOV
(US$ K)
9 5 11 14
9% 3%
6% Volume
10% 15% 16% 231 113 25 94
(K)
Gurgaon Delhi Noida
Source: Praxis analysis
South Delhi: Biggest micro market in Delhi, AOV is higher at US$ 12K; super affluent
and modern business owners’ concentration is high and consume ID services
TAM, Units, AOV,

US$ M
625 #K
51 US$ K
12
TAM, US$ 1.6B
5%
10%
Value, Builder Volume, Builder
13% 39% Flat Villa Total Flat Villa Total
US$ M Floor # Floor
33%
FHD 41 86 193 320 FHD 2,284 5,392 7,613 15,225
PHD 27 65 145 237 PHD 3,045 7,993 11,419 22,457
South North
West East FL 10 18 40 68 FL 2,284 4,441 6,344 13,068
Central Total 78 169 378 625 Total 7,613 17,763 25,375 50,750
High-end Mid-income
Modern Traditional
corporate service class Public sector Super
Demand business business Investors
employees / employees / employees affluent
owners owners
professionals professionals
◔ ◔ ◔ ◔ ◔ ◔ ◔
Demand and fulfillment
Flat
Builder floor ◕ ◕ ◕ ◕ ◔ ◕ ◑
Villa ◑ ◔ ◑ ◕ ◔ ● ○
High-end Mid-income
Modern Traditional
Fulfilment business business Investors
owners owners
Flat or + or +
Builder floor + + + or +
Villa + + + or + NA
Concentration
○ ◔ ◑ ◕ ●| 110
Full-stack Independent
Turnkey contractor Sub-contractors Low High
ID ID
Source: Primary research, Census data, Secondary research, Praxis analysis
North Delhi: It is US$ 526M market (2nd biggest) made up of 64K units; AOV
is US$ 8K
TAM, Units, AOV,
US$ M
526 #K
64 US$ K
8
TAM, US$ 1.6B
5%
10%
US$ M Floor # Floor
33%
FHD 105 54 112 271 FHD 7,653 4,755 6,718 19,126
PHD 70 41 84 194 PHD 10,204 7,133 10,077 27,414
South North
West East FL 26 11 23 61 FL 7,653 3,963 5,598 17,214
High-end Mid-income
Modern Traditional
Demand business business Investors
owners owners
◔ ◕ ◔ ◑ ◕ ◔ ◔
Flat
Builder floor ◕ ◑ ◕ ◕ ◔ ◕ ◕
Villa ◑ ◔ ◕ ◕ ◔ ● ◑
High-end Mid-income
Modern Traditional
owners owners
Flat or + or +
Villa + + + or +
Concentration
○ ◔ ◑ ◕ ●| 111
ID ID
West Delhi: US$ 207M market (3rd largest) with AOV of US$ 8K
TAM, Units, AOV,

US$ M
207 #K
26 US$ K
8
TAM, US$ 1.6B
5%
10%
US$ M Floor # Floor
33%
FHD 48 31 28 107 FHD 3,919 2,333 1,582 7,835
PHD 32 24 21 76 PHD 5,226 3,500 2,374 11,100
South North
West East FL 12 7 6 24 FL 3,919 1,945 1,319 7,183
High-end Mid-income
Modern Traditional Public
corporate service class Super
Demand business business sector Investors
employees / employees / affluent
owners owners employees
Flat ◔ ◑ ◑ ◑ ◑ ○ ◑
Builder floor ◔ ◔ ◑ ◑ ◑ ◑ ◑
Villa ◔ ◔ ◑ ◑ ◔ ◕ ◔
High-end Mid-income
Modern Traditional
owners owners
Flat or + or +
Villa + + + or +
Concentration
○ ◔ ◑ ◕ ●| 112
ID ID
East Delhi: US$ 154M market (4rd largest) with AOV of US$ 9K; region
dominated by mid-income professionals living in flats
TAM, Units, AOV,
US$ M
154 #K
18 US$ K
9
TAM, US$ 1.6B
5%
10%
US$ M Floor # Floor
33%
FHD 20 16 42 79 FHD 1,316 1,574 1,574 5,261
PHD 13 12 32 57 PHD 1,755 2,362 3,556 7,672
South North
West East FL 5 3 9 17 FL 1,316 1,312 1,975 4,603
High-end Mid-income
◔ ◕ ◔ ◔ ◑ ○ ◑
Flat
Builder floor ◔ ◔ ◕ ◕ ○ ◑ ◑
Villa ◔ ◔ ◑ ◕ ○ ● ◔
High-end Mid-income
Modern Traditional
owners owners
Flat or + or +
Villa + + + or + NA
Turnkey contractor Sub-contractors

Full-stack
ID
Independent
ID Low ◔ ◑ ◕ ● High| 113
Central Delhi: Smallest micro market of US$ 86M; higher than average AOV
of US$ 12K
TAM, Units, AOV,
US$ M
86 #K
7 US$ K
12
TAM, US$ 1.6B
5%
10%
US$ M Floor # Floor
33%
FHD 3 16 25 44 FHD 108 1,193 867 2,169
PHD 2 12 19 33 PHD 145 1,790 1,301 3,235
South North
West East FL 1 3 5 9 FL 108 994 723 1,826
Central Total 5 32 50 86 Total 361 3,978 2,891 7,230
High-end Mid-income
Flat ◔ ◑ ◔ ◔ ◕ ○ ◔
Builder floor ◔ ◕ ◕ ◕ ◑ ◕ ◑
Villa ◔ ◔ ◕ ◕ ◑ ◔ ◔
High-end Mid-income
Modern Traditional
owners owners
Flat or + or +
Villa + + + or +
Concentration
○ ◔ ◑ ◕ ●| 114
ID ID
Agenda
Inventory & Demand

overview

Value prop & survey
Services Supply
overview overview
| 115
Value props for Delhi NCR market are integrated & value offering, KnW++,
builder partnerships and premium offering
Integrated Value KnW++ Builder
offering offering Premium
(franchisee stores) partnerships
• Integrated one stop • Value offering • Fitted furniture • Builder partnerships • Premium bespoke
solution for home consisting of basic solutions - modular for mainly builder floor designs & architecture
renovation necessities of furniture, kitchens, wardrobe and and flat with latest global
• Bespoke designs and services and kitchen storage • Pre fitted KnW solution systems for home
Offering
centralized fulfillment • Hassle free one stop • Extended KnW for the full townships automation etc.
capability budget solution (KnW++) packages to • Project management
• Competitive rates as facilitate a part of the and preferred supplier
compared to “local house like kids' room, integration
integrated contractors” bathroom etc.
• Integrated offering is • Value offering to tap • KnW++ offering for • Developing capability • Developing capability
most suitable for into the “fortune at the standardized in builder led after retail +
Gurgaon and Noida bottom of the pyramid” experience residential play to drive institutional residential
Rationale
due to high • Noida has very high • KnW++ helps tap into growth in “pre-fitted” play into the premium
construction activity proportion and the consumer segment modular kitchens and to drive growth in
and willingness to concentration of which is unwilling to go services premium market
consider full stack budget inventory which for “full stack” project • Lead gen for full stack present mostly in
service provider makes this offering due to constraints projects Gurgaon and certain
very suitable related to budget / pockets of Delhi
• Also suitable for rental design / personal
properties preference
D ◑ ◕ ● ◕ ◑
G ● ◔ ◕ ◕ ●
N ◕ ● ● ◑ ○
Relevance
○◔ ◑ ◕ ●
Note: D, G, N stands for Delhi, Gurgaon, and Noida respectively; KnW stands for kitchen and wardrobe
Low High | 116
Source: Praxis analysis
Integrated offering: An ID studio can execute ~18-20 residential projects
annually at an EBITDA range of 20-25% on revenue
Yearly economics for FHD offering in steady-state condition (INR L, 2019)
25
43
169
58
108 360
54
5.4 8.0 5.4
22
7.2 8.0
126 137 137 124 118.2
81
Services Loose
Loose furniture Design
Design fee Material
Material Cost Gross
Gross margin Installation
Installation cost Marketing
Marketing cost Salaries Misc.
Misc.
Services
furniture fee cost margin cost cost
Fitted DHI Total Service Logistics Contribution Contribution Rent EBITDA
furniture revenue cost cost margin 1 margin 2
Percentage split of revenue
35 30 16 12 7 100 47 15 38 1.5 2 34 1.5 32.5 6.2 2 2.2 22
Livspace revenue split

100
Observations Key assumptions

• A medium ID company executes 15-20 projects annually AOV INR L 20
• The company generally has a staff of ~8-10 employee, including
IDs, architects, draftsman, site supervisors, admin and account staff. Projects / Villa BF Flat
year # 18
• The company operates on EBITDA of 20-25% on GMV 5 6 7
Employees # 10
Note: BF: Builder Floor Duration Month 3-4 | 117
Source: Primary interactions, Financial statements, Praxis analysis
Value offering: The EBITA margins for a value offering project will range
form 18-20%, slightly less than that of a integrated offering
Unit economics for a value offering project (INR L, 2019)
0.8
1.8
1
4.0 0.6
1 0.1 0.1 0.2
0.4
1.7 1.7 1.5 1.5 0.12 0.1
1.2 1.4 1.4
0.8
Fitted furnitureLoose Services DHI Revenue Material Gross Logistics cost
Service cost(Labor Installation Marketing
Contribution ContributionSalaries Rent Misc. EBITDA
furniture cost cost) margin cost margin 1 cost margin 2
Fitted Services Total Service Logistics Contribution Contribution Rent EBITDA
30 25 25 20 100 44 14 42 2 2 38 4 34 9 3 2 20
100
Observations
• Scope of a value offering project will include modular kitchen, Key assumptions
one cabinet unit, small piece of false ceiling, 1-2 small loose furniture AOV INR L 4
items, limited area (living room/ mater bedroom) paint/wallpaper.
• Offering suitable for investors and mid income service employees Type of
- Flat (1,000 sq. ft)
• The project will operate on EBITA of 18-20% margins slightly (3-4%) house
lower than integrated offering | 118
Duration Month 2-3
KnW stores: A KnW store typically sources ~15 projects per month
operating at an EBITDA of 10% on revenue
Yearly economics for a KnW store (INR L, 2019)
54
216
540
486 486 65
6 4
49
270 50
205 205 199 195 195
146 146 36
96 13
60 47 47
GMV Discount Revenue Service cost(LaborGross Logistics cost
Material Installation Marketing
Contribution margin Contribution margin
Salaries Rent Misc. EBITDA
cost cost) margin cost 1 cost 2
Total Service Logistics Contribution Contribution Rent EBITDA
GMV
revenue cost cost margin 1 margin 2
Percentage split
100 44 13 42.5 1.5 1 40 10 30 10 7 3 10
of revenue
Livspace split of
100
revenue
Observations Key assumptions

• A KnW store typically executes 15 projects/month at steady state
Store area Sqft. 2.5 – 3K
• The store has ~1-2 designers, 1 managers and ~3-4people in
installation team AOV INR L 3
• It is supported by ~1-2 people for lead generation & marketing and Projects / month # 15
another ~1-2 people in admin and support staff
• It operates at EBITDA of 8-12% on Revenue Employees # 7
Duration Month 1.5 - 2
| 119
Builder partnership: Builder typically construct 10-12 floors per year and
works on ~10% commission for KnW and ~3-5% for converted FHD lead
Yearly economics for a KnW store (INR L, 2019)
9 9
19 2.6
0.2 0.1
2.4
10 10 10
7.7 7.7 7.5 7.4 7.4 1.6
5.0 5.0 0.5 0.2
3.4 2.9 2.7 2.7
Commission
GMV KnW Revenue Service cost(LaborGross Logistics cost
Material Installation
Contribution margin Contribution margin
Salaries Rent Misc. EBITDA
cost margin cost & marketing
cost) 1
Contribution 2
FHD
Total Service Logistics cost Contribution Rent EBITDA
revenue cost cost margin 1 margin 2

63 37 100 46 14 41 1 1 39 13 26 8 3 1 14
Livspace split of revenue
100
Observations
• On an average, a builder constructs 3-4 sites or 10-12 floor per year Key assumptions / inputs
• Builders with vendor contracts (B2B) for KnW typically work on 8- KnW FHD
10% commission and charges 3-5% for FHD lead generation (B2C) AOV INR L
upon conversion 3 10
• Builder in joint development model in premium localities like Vasant
Project /
Kunj, Kalkaji, Lajpat Nagar see value in collaborating with an ID builder /
studio or branded retail kitchen player in order to sell the property at # 3 1
year
a premium and earn additional margin on interiors
| 120
Premium offering: Premium projects have better gross margins (~45%)
compared to standard FHD project
Unit economics for premium FHD project (INR L, 2019)
13
20 48
21
125 21
34 1.3 0.3 1.3
21
56 56 55 1.9 0.9
53.5
38 30
Services Loose
Loose furniture Design
Design fee Material
Material Cost Gross
Gross margin Installation
Installation cost Marketing
Marketing cost Salaries Misc.
Misc.
Services
furniture fee cost margin cost cost
Fitted DHI Total Service Logistics Contribution Contribution Rent EBITDA
30 27 17 16 10 100 38 17 45 1 .2 44 1 43 17 1.6 .7 24

100
Observations
• A premium project is executed typically on EBITDA of 22-28% on
Key assumptions
GMV
• The percentage labour cost is relatively high when compared to
AOV INR L 125
standard FHD projects because of the need for specialized
workmanship
Duration Month 8 - 12
• Project is executed at higher design fees and DHI component
Note: BF: Builder Floor
| 121
Premium offering has highest EBITDA margin of 24%; marketing cost is
highest for builder partnerships; rent is highest for KnW++ stores
Integrated Value Premium KnW++ Builder

offering offering offering stores partnerships
Market Livspace Market Livspace Market Livspace Market Livspace Market Livspace
AOV (INR L) 20 4 125 3 4.75
Total revenue 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
Material cost 47% 44% 38% 44% 46%
Service cost 15% 14% 17% 13% 14%
GM 38% 42% 45% 42% 41%
Logistics cost 2% 2% 1% 1% 1%
Installation cost 2% 2% 0.2% 1% 1%
CM1 34% 38% 44% 40% 39%
Marketing cost 2% 4% 1% 10% 13%
CM2 33% 34% 43% 30% 26%
Salaries 6% 9% 17% 10% 8%
Rent 2% 3% 2% 7% 3%
Misc. 2% 2% 1% 3% 1%
EBITDA 22% 20% 24% 10% 14%
| 122
NPS for full stack ID firm is high (>25%); subcontractors’ NPS is <0% for
FHD projects
Current service provider for FHD project (N = 45)
N = 45
N = 10 N = 10 N=6 N = 10 N=4 N=5 Retail store, 2%
Retail store, 10% Sub-contractor,
20%
Sub-contractor,
40% Sub-contractor,
50% Turnkey contractor, Sub-contractor,
Sub-contractor, Sub-contractor,
20% 56%
50% 67%
FHD
Sub-contractor,
90%
Turnkey contractor,
30% ID + contractor,
Turnkey contractor, 10% 40% Turnkey contractor,
Turnkey contractor, Turnkey contractor, 18%
ID + contractor, 10% ID + contractor, 17% 50% ID + contractor,
20%
ID + contractor, 16%
Full-stack ID, 20% Full-stack ID, 20%
Full-stack ID, 10% 17% ID + contractor, 10% Full-stack ID, 9%
Current service provider for PHD project (N = 56)
N = 24 N = 11 N = 14 N=3 N=3 N = 56
Retail store, 8% Retail store, 5%
Sub-contractor,
18%
Sub-contractor, Sub-contractor, Sub-contractor,
21% 36% Retail store, 33% 29%
Sub-contractor,
67%
PHD
Sub-contractor,
Turnkey contractor, 33%
73%
Turnkey contractor, Turnkey contractor,
71% Turnkey contractor,
63%
64%
x Turnkey contractor, Full-stack ID,

ID + contractor, 2%
33% 33%
ID + contractor, 9%
Full-stack ID, 2%
High-end corporate Mid-income service Modern business Traditional Public sector Super affluent Overall
emp. / prof. emp. / prof. owners business owners employees
x Not enough data NPS (<0%) NPS (0-25%) NPS (>25%) | 123
Source: Consumer survey (N=101), Praxis analysis
For FHD, high end corporates / prof. will choose integrated offering (55%);
super affluent will go ahead with premium offering (88%)
Current service provider for FHD project (N = 45)
N = 10 N = 10 N=6 N = 10 N=4 N=5 N = 45
20%
Current service
50% 40% 50%

67% 20% 56%
provider
90%
10% 30%
40%
10% 18%
10% 17% 50%
20% 16%
20% 17% 20% 2%
10% 10% 9%
Full-stack ID Retail store ID + contractor Turnkey contractor Sub-contractor
Livspace
relevant 40% 30% 17% 10% 0% 60% 27%
(%)
10% -20% -33% 20% -25% 60% 2%
FHD future value proposition preference (N = 101)

N = 11 N = 34 N = 17 N = 24 N=7 N=8 N = 101
Future FHD preference
18% 13% 12%

27% 25%
35%
43% 22%
18%
9%
21% 8%
9% 12%
29% 4% 14%
88% 25%
24%
6% 38%
55% 29% 10%
29% 29% 24%

4% 14%
8%
High-end corporate Mid-income service Modern business Traditional business Public sector Super affluent Overall
emp. / prof. emp. / prof. owners owners employees
Integrated offering Premium offering Value offering ID + contractor Turnkey contractor Sub-contractors
Livspace
relevant (%) 63% 65% 82% 54% 43% 88% 66%
Integrated, Integrated,
Offerings Integrated Value Value Premium
value value
NPS | 124
For PHD, traditional business owners and public sector employees will
choose retail store; super affluent will choose premium offering (75%)
Current service provider for PHD project (N = 56)
N = 24 N = 11 N = 14 N=3 N=3 N = 56
21% 18%
29%
Current service
36% 33%
provider
67%
33%
71% 73%
63%
64%
33% 33%
x 2%
8% 9% 5%
2%
Full-stack ID Retail store ID + contractor Turnkey contractor Sub-contractor
Livspace
relevant - 8% 9% 0% 0% 67% 9%
(%)
NA -4% 9% 50% 0% 67% 18%
PHD future value proposition preference (N = 101)

N = 11 N = 34 N = 17 N = 24 N=7 N=8 N = 101
9% 12% 13%
Future PHD preference
16%
27% 25% 29%
13%
24%
41% 25%
9% 13%
4%
18% 18% 29% 7%
9%
9% 12% 23%
42% 75%
9% 15%
12%
8%
9% 6% 43%
9%
27% 8%
18% 18% 4% 13%
4%
High-end corporate Mid-income service Modern business Traditional business Public sector Super affluent Overall
emp. / prof. emp. / prof. owners owners employees
Integrated offering Premium offering Value offering Retail stores ID + contractor Turnkey contractor Sub-contractors
Livspace
relevant 63% 50% 64% 62% 43% 87% 59%
(%)
NPS | 125
Value props for Delhi NCR market are integrated, premium & value
offering, KnW++ stores and builder partnerships
Customer archetypes Micro markets
High end Mid income Modern Traditional

Public sector Investors / Super Total (US$
corporate employees / business business Delhi Gurgaon Noida
employees landlords affluent M)
emp. / prof. professional owners owners
95* 135 83 4 221 54 41

Integrated
offering
PHD++)
(FHD /
✔ 55%# ✔ 29% ✔ 29% 8% 14% - ✔ 0% ✔ 22% ✔ 26% ✔ 24%

317
Majorly new, Majorly new, all New + reno, New + reno, New + reno, New + reno, Majorly new,
✖
all HTs HTs all HTs all HTs all HTs all HTs all HTs
106 7 52 53 86 187 35 82
Value offering
Retail – FHD / PHD++
9% ✔ 24% 29% ✔ 38% ✔ 29% ✔- 0% ✔ 32% ✔ 23% ✔ 16%

304
Majorly new, Majorly new,
New + reno, all New + reno, New + reno, all New + reno, all New + reno, Majorly new,
✖ flat and ✖ flat and
HTs all HTs HTs HTs all HTs flat
builder floor builder floor
157 130 27
Premium
offering
9% 0% 6% 4% 0% - ✔ 88% ✔ 10% ✔ 11%

✖ 157
New + reno, New + reno, New + reno,
✖
all HTs all HTs all HTs
N=101 11 34 17 24 7 NA 8 41 35 25
21 82 20 37 31 106 204 40 53
Franchisee
(KnW++)
stores
Retail - PHD
✔ 18% ✔ 15% ✔ 12% ✔ 42% ✔ 43% ✔- 13% ✔ 27% ✔ 20% ✔ 20%

297
New + reno, all New + reno, New + reno, New + reno, New + reno,
New + reno, all HTs New + reno, all HTs ✖
HTs majorly flats all HTs all HTs all HTs
N=101 11 34 17 24 7 NA 8 41 35 25
Builder partnership
9 37 6 23 14 46 113 23
✔ ✔ ✔ ✔ ✔ ✔
institutional
New + reno, ✖ ✖ 136

Semi
New + reno, New + reno, New + reno, New + reno, New + reno,
builder floor flats New + reno, New + reno,
builder floor builder floor builder floor builder floor builder floor
and villas builder floor flats builder floor flats
flats flats and villas flats flats flats
Total
(US$ M) 125 360 116 112 98 238 161 855 179 176 1,211
Note: Builder partnership has not been tested via survey. HT = house type, KnW = Kitchen and wardrobe, PHD = Partial home design, FHD = Full home design, PM = Project
management, *SAM in USD M. #Percentage shows the proportion of respondents who chose the offering. Percentages might not add up to 100% due to availability of options
like subcontractors, turnkey contractor etc. | 126
Source: Consumer survey (N=101), Primary research, Secondary research, Praxis analysis No Sometimes Mostly
US$ 1.2B market is serviceable with current offerings; Integrated offering
contributes ~24%, KnW++ contributes 23%
Market overview by volume % Total ~86K Market overview by value % Total US$ 1.2B
~59K ~15K ~12K US$ US$

US$ 855M
179M 176M
100% Premium offering, 3% 3%
100%
13%
Premium offering, 15% 15%
90% Builder partnership, 14% 14% 90% 23%
80% 80% Builder partnership, 13% 13%

Integrated offering, 13%
19%
70% 70%
42%
60% 60% Integrated offering, 26%

30%
Value offering, 27% 22% 47%
50% 50%
40% 40%
Value offering, 22%
19%
30% 30%
20% KnW++, 42% 41% 45% 20%

KnW++, 24% 22% 30%
10% 10%
0% 0%
Delhi Gurgaon Noida Delhi Gurgaon Noida
Source: Govt data, Secondary research, Primary research, Praxis analysis
Customers appreciate the integrated experience, transparency of quote and
materials; customization, catalogue and offline presence can be improved
What is going well? What can be improved?
D G N D G N
Transparency of material: Customers believe Limited customization : Customers feel lack of
Livspace uses the promised quality / grade customization options available especially in
materials furniture
Professionalism: Customers value Longer timelines compared to local
professionalism demonstrated at each project vendors: Customers feel due to parallel
stage through SPOC, reinforcing the brand working of multiple sub contractor the project
experience duration is less
Allocation of entry-level designers and lack
Good designs: Customers find the designs to of empathy: Customers sometimes feel that
be modern and trendy, also appreciate the the IDs allocated lack substantial experience
quality of designers engaged on projects and initial pitches are sales focused & lack
customer empathy
Design vision adherence and 3D model
Limited catalogue in furniture: Customers
support: Customers find Livspace designer to
feel complete catalogue of a furniture vendor is
be vested in their design vision; 3D model
not listed, variations (colour / design) of product
offering is appreciated for clear visibility of the
are not listed
final output
Inferior project management in
Seamless communication: Customers implementation phase: Customers feel that on
appreciated the seamless communication & site project management is low during
weekly progress updates thorough mails implementation phase, leading to customer
directly engaging with labour
Hassle free integrated experience: Low offline presence: Customers express a
Customers appreciated the single SPOC, desire to touch and feel before they buy, fewer
hassle free, integrated project experience ECs, or EC too far from home
Warranty on products: Customers appreciate Low brand recall: Customers are not able to
the warranty on product and after sales recall the brand name or at times don’t
services understand the brand positioning
Level of satisfaction Level of pain faced
High Low High
|
Low 128
Thank You
| 129
Respondent profile: Renovation consumer survey
Respondent profile (N=101)
More than INR More than 50

Public, 7%
1Cr, 6% years old, 8%
Noida, 25% Builder floor,

27% INR 50L or more but less
New, 32%
than 1Cr, 20%
41-50 years old, Female, 42%
30%
Private
business, 46%
Villa, 28%
Gurgaon, 35%
INR 10L or
Reno, 68% more but less 30-40 years
than 50L, 74% old, 55%
Male, 58%
Private service,
Flat, 46% 48%
Delhi, 41%
Less than 30
years old, 7%
Micromarket Property type Renovation type Annual HHI Occupation Age Gender
| 130

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Livspace Delhi NCR market study

Phase II - Supply and services study for Mumbai market

Delhi NCR Mumbai

• Understanding of project types and spends associated with them

• Mapping of different customer segments by behaviour & need

• Finding right mode of entry for Delhi market

Consumer survey (N=64) Gurgaon Delhi Noida

Inventory & Demand

TAM / SAM & GTM, growth

Area Population GDP per capita • Approach:

Area (sq.km) 1,484 1,258 511

~160M ~200M ~19M ~23.6M ~19M ~23.6M ~19M ~8M

Sao Sao 35-59

Note: UA: Urban agglomeration | 13

Average household size 4.9 3.1 3.3 3.1

GDP (US$ B, 2019) 125.3 109.8 76.8 375 177

GDP per capita (US$ K, 2019) 5.3 4.7 5.0 67 16

Area (sq. km.) 3,253 920 2,208 725 4,700

Urban average household size

Avg. housing unit size (sq. ft.,

Working age population (%,

Pop. growth (%, 2011-2018) 3.1 1.5 3.6 0.8 1.2

Median age (years, 2011) 27 28 28 40 37 (2018)

Population density (K / km sq.

Flat Builder Floor Villa Farm House

Price range (US$ K) 70-500 100–600 500-2,000 1.000-5,000

Total units sold, 2018 (K) 20 13 2 0.14

Typical floor size (sq. m) 150 180 500 1500

Typical number of rooms 2-4BHK 2-4BHK 3-6BHK 4-6BHK

Median Purchase 185 260 1,145 2,460

Overall Gurgaon Delhi Noida

50-100 21% 50-100 22% 50-100 20% 50-100 40%

Rented , 4% 4+BHK, 5% Rented, 7%

3 BHK, 19% 1.5-2, 11%

Note: Farmhouses are clubbed into villa

Total housing units (K) Supply of new residential units

467 486 497 506 513 0.4%

Noida Gurgaon Delhi Builder Floor Villa Flat

Flat 37 Flat 98 Flat 60 HDB 79 Condo 32

Type of residence (%) Villas 34 Villas 25 Condo 16 Townhouses 42

< INR 2.5M 90 HDB loan 90 < THB 10M 85

Loan to value ratio (%) INR 2.5M to 7.5M 80

Average age of property (years) ~36 ~30 NA 16.5 20.7

Average reno spend (US$ K, 2018) ~10 ~12 ~9 ~35 ~9

Inventory & Demand

TAM / SAM & GTM, growth

Size (in • 0.8-3K • 1.5-4.5K • 2-6K

Inventory • 18.6K • 6.8K • 1.9K

Reason of • Wear and tear, • Wear and tear, ageing

# units (2018, K) 22 5 2 0.6 2 0.5 0.82 0.07 0.06 0.95

% share Noida 85% 15% 5% 15% 70% 15% 90% 5% 5%

# (K) 10 15 4 1 2 0.8 1 0.4 0.3

Typical annual HH income

• Fitted wardrobes and TV storage units

TAM (US$ M) Segmental 31 133 75 4 17 12 10 13 8

• Offline: Friends and family, local service

• Referral feedback and previous track

• Independent sub-contractors (100-200): • Independent sub-contractors (<200):

Cash payment preference ◑ ◔ ◔ ◕ ◕ ◕ ◕ ◕ ◕

• Cost, time overruns and multiple follow-ups

% of TAM Segmental 0% 99% 97% 65% 94% 90% 15% 28% 3%

were personally involved at the

Reliable / updated reviews