IPO-bound home interiors and renovation platform Livspace has acquired a majority stake in Mumbai-based architectural and LED lighting manufacturer Abby Lighting, marking a significant step in its strategy to vertically integrate key components of the home improvement value chain.
According to a report, Abby Lighting acquisition is valued at approximately INR 204 crore (~ USD 23 million) and has been executed through a cash-and-stock structure. Of the total consideration, INR 173 crore has been paid in cash, while the remaining INR 31 crore has been settled via a share swap.
Livspace and Abby Lighting Deal: Structure & Ownership
As part of the equity component, Abby Lighting’s co-founders Sanjay Bajaj and Suresh Bajaj have been allotted 4,11,274 equity shares of Livspace, translating to an estimated 0.31% stake in the acquiring company. Despite the change in ownership, Livspace has clarified that the existing promoters and management of Abby Lighting & Switchgears will continue to run the business, with operations remaining unchanged.
Strategic Rationale: Vertical Integration into Lighting
Founded in 2000, Abby Lighting brings over two decades of engineering-led manufacturing expertise to Livspace. The company designs and manufactures a wide range of LED and architectural lighting solutions, including anti-glare luminaires, architectural downlights, magnetic track systems, and human-centric lighting. Its products cater to residential, commercial, hospitality, retail, educational, and institutional projects.
Crucially, Abby Lighting manufactures its portfolio entirely in-house, supported by an 85,000+ sq ft design and manufacturing facility in Palghar, Maharashtra. This capability gives Livspace tighter control over quality, specifications, and execution timelines, addressing a critical component of interior projects that often relies on third-party vendors.
Industry observers view the acquisition as a clear vertical integration play, allowing Livspace to embed specialised lighting solutions directly into its end-to-end design-and-build offerings. For customers, this promises greater consistency in design outcomes; for Livspace, it strengthens margins, quality assurance, and differentiation.
Fifth Acquisition in a Consolidation Strategy
Livspace and Abby Lighting deal mark the company’s fifth acquisition to date. The company has previously acquired Qanvast, YoFloor, Dwll.in, and DezignUp, steadily building a broader ecosystem across discovery, design, and execution. The Abby Lighting acquisition extends this consolidation strategy into core physical components, rather than just platforms or marketplaces.
Backed by IKEA, Livspace has positioned itself as a full-stack home interiors player rather than a pure-play design marketplace. The addition of a trusted, Indian-made lighting brand further reinforces this positioning.
Financial Context and IPO Readiness
From a financial standpoint, the acquisition comes at a time when Livspace is showing an improving operating leverage. For the fiscal year ended March 2025, the company reported 23% year-on-year growth in operating revenue, rising to INR 1,460 crore from INR 1,185 crore. More notably, Livspace reduced its losses by 42% to INR 242 crore, a key metric investors typically scrutinise ahead of a public listing.
Livspace has raised over USD 520 million (~INR 4,670 crore) to date, including a USD 180 million (~INR 1,616 crore) Series F round led by KKR & Co., which propelled the company into unicorn territory.
Final Words
Abby Lighting acquisition is more than a routine M&A transaction. It signals Livspace’s intent to control critical supply-side elements of home interiors, improve execution reliability, and deepen its value proposition as it prepares for the public markets.
For Abby Lighting, the deal provides scale, assured demand, and deeper integration with one of India’s largest interior design platforms—while preserving promoter-led operations and brand identity.
As Livspace moves closer to an IPO, transactions like this are likely to be read as preparatory moves to strengthen fundamentals, enhance margins, and present a more integrated, defensible business model to public market investors.
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