Dream Home To Scam Scheme- Unfolding The Untold Story Of Livspace India!

Introducing Livspace, the once-promising Bengaluru-based interior-design startup (backed by the likes of Ikea, Goldman Sachs and KKR), now finds itself embroiled in a storm of consumer outrage. In forums from Reddit to consumer-complaint websites, irate customers and ex-employees are painting a damning portrait of the “unicorn” interior company as a “big fraud” and “scam.” The allegations are remarkably consistent like hidden charges, soaring quotes, shoddy work, unresponsive service, and money that disappears. We compiles the voices of victims and insider whistleblowers, all backed by concrete examples, to reveal how Livspace’s promised dream homes have turned into nightmares for many.

Background – Livspace’s Origins and Growth

Founded in 2014 by IIT alumni Anuj Srivastava and Ramakant Sharma, Livspace pitched itself as an “end-to-end home design experience” platform. It aggregated designers, vendors and execution partners on one platform, promising to deliver fully-renovated homes in “45 days” without homeowner headaches. By 2022, Livspace had raised over $400 million in funding and achieved unicorn status (valuation ~$1.2 billion).

Its financial reports, however, told a cautionary tale where revenues were climbing, but losses were far bigger. For FY2022, Livspace reported sales of ₹570 Cr and losses of ₹645 Cr, a net loss 1.5× its revenues. Similarly, even in FY2019 it had nearly ₹145 Cr in losses on ₹80 Cr revenue. In short, behind the fanfare of startups and Silicon Valley investors lay a company hemorrhaging cash. This context matters, because if we see the mounting complaints, we won’t be wrong to suggest that Livspace’s business model passed its red ink down to consumers and contractors.

Customer Complaints and Scam Allegations

Consumer forums and social media are filled with frustrated Livspace customers. They recount a familiar script where low initial quotes were mentioned that balloon over time, including substandard materials and workmanship, and unkept promises of refunds. Below are representative grievances, grouped by theme, all well-documented on public platforms:

1. Quotation Tricks and Hidden Costs:

One recurring allegation is that Livspace lures customers with an attractive “spot-booking” offer or a low initial quote, only to jack up the price later. For example, a Pune customer reported paying a ₹25,000 “spot booking” for a project promised at ₹2.5 lakh, only to be told immediately after that quotes would double because items were “forgotten” initially.

Similarly, in Greater Noida, a complainant wrote that Livspace quoted ₹8–10 lakh for full interiors, took a ₹1 lakh deposit, and then kept inflating the quotation – first to ₹14L, then to ₹18L – while delivering only half the work. When that customer asked for a refund of the booking, Livspace “denied to refund”. In other words, the pattern is consistent: lowball the client, secure advance money, then revise the price upward and guilt-trip the customer.

A live example from consumer court records illustrates this “bait-and-switch” vividly. A Livspace sales manager promised a cancellation was fully refundable, but after paying ₹50,000 booking on a ₹370,000 estimate, the customer saw the BOQ (bill of quantities) nearly double. Even after complaining, Livspace insisted on keeping ₹1.5 lakh of a ₹2.5 lakh advance while returning only ₹1 lakh – despite having done less than ₹1 lakh of work. The complainant concluded: “We have suffered… fighting with frauds. We feel cheated.”.

Reddit and social-media threads echo this theme. One user bluntly titled a post “LIVSPACE IS A SCAM!! DARK REALITY REVEALED”, recounting how spot discounts turn into traps. They described spot-booking offers as “fraud scams,” where “they purposely make initial quote less and try to fool you,” only to claim budgets won’t fit after you’ve paid the deposit. Another review warned buyers not to fall for on-the-spot promotions, as Livspace staff would later argue the design “does not fit” your flat unless you pay far more. In all these narratives, the culprit is hidden terms and moving targets – misrepresentation of the final price to squeeze out more money.

2. Substandard Work and Delays:

After coerced spending, customers often report an equally toxic dose of poor execution. Many say Livspace’s actual product is far from the promised luxury. A MouthShut review by “Lipun” (Bhubaneswar project, Feb 2023) laments that Livspace “changed the whole thing” after taking payment – new cheaper wardrobe colors, inferior handles, and materials different from the showroom selection. He exclaimed, “Don’t ever go with this company, they’re frauds… they change everything and give cheap products to people”. According to him, Livspace staff admitted that only “what’s mentioned on the signoff document” could be delivered, effectively blaming the customer for not video-proofing their selections.

Design and workmanship issues appear repeatedly. A 2019 senior-designer on Glassdoor titled their review “It’s a scam!” and listed problems: “Clients aren’t given the things promised at the time of booking. Execution team is pathetic. Their vendors are substandard.” In practical terms, this employee claimed Livspace trades quality for profit, using poorly-vetted contractors. An article quotes one Livspace freelancer saying management pressured designers to sell “stuff that you know is a criminal waste, but still you sell to meet your targets” – a damning insider take on how clients get inferior goods.

Construction delays compound the pain. On Voxya (a consumer complaint portal), Yogesh Kaushik described a renovation run by Livspace where “major design discrepancies, poor craftsmanship, unskilled labour, and a lack of accountability” plagued the project. After months of civil work, the handover was “incomplete, substandard,” causing “significant mental distress”. Another customer on NoBroker (Mumbai forum) summarized it succinctly: “They make cancellation promises but don’t follow through… It appears to be a money-collecting fraud.”. In these and other posts, individuals often advised “hire local contractors instead” – a signal of lost faith in Livspace’s promised convenience.

Indeed, even after projects technically “finish,” the fallout lingers. One story notes that among those who somehow endured the process, one customer’s flat was only partially usable six months late; he recounted, “No one listens, no matter how many emails and calls you make.” Livspace’s official response to the investigation acknowledged 20,000 completed projects and a claim of “necessary infrastructure” to handle issues, but such reassurances ring hollow to customers stuck with half-done homes and broken promises. If you want to follow the trail, continue this link to consumer forum website to know more about Livspace complaints.

3. Refund and Money Hassles:

A central theme is the fight for refunds. Countless customers report that once Livspace has their money – often tens of thousands upfront – getting it back is nearly impossible. One Pinterest-linked Livspace complainant warned: “Livspace gave written assurance on refund…but they are now refusing the refund amount” (Voxya listing, Dec 2024). Another (C2 court listing) said Livspace accepted a booking, then refused to cancel it, promising a refund. Instead, “they now refusing the refund amount.” 

Actual attempts to get refunds often meet stonewalling. A Pune customer who backed out after paying ₹25,000 reported that Livspace staff were “not responding” to refund requests, so he posted on ConsumerCourt.net begging for help. In Hyderabad’s reddit and other forums, frustrated clients advise legal notices or lodgings police complaints. One Reddit thread suggests, “you can surely try filing a police complaint” when refunds stall (although the original Reddit thread is also a consumer-to-consumer forum, not an official case). On Voxya, Ankita explicitly wrote, “Do not go with Livspace, they … are not refunding the amount”.

These are not one-off incidents. A Voxya dashboard summary shows dozens of Livspace complaints with refunds sought (and often not given) over the years. One particularly heartbreaking case involves Dr. Jigisa Tripathy (a prominent consumer) who halted her ₹4.47 lakh project midstream. Livspace management agreed to return only ₹1 lakh of the ₹2.5 lakh paid, demanding ₹1.5 lakh for substantially incomplete work. She concluded the ordeal “has compromised our mental peace” after “complete disregard” by Livspace. “Complete disregard for customers” is a refrain on these sites, with many saying they were “mentally harassed” by Livspace’s delay and excuses.

4. Employee and Vendor Grievances:

It’s not just customers – Livspace’s own ranks and vendors have raised alarms. A report of dozens of vendors (carpenters, electricians, etc.) claiming Livspace owed them lakhs of rupees, refused payments, and demanded new work as “blackmail.” For example, Bengaluru contractor Sudharshan put in ₹10 lakh of work, waited eight months and heard nothing. “It’s blackmailing… they are now exploiting me,” he said. Pune vendor Sachin Jagdhane has ~₹3 lakh in unpaid invoices after 10 projects.

Both now plan consumer cases. Freelance designers (called “design partners” by Livspace) are similarly disgruntled: they say Livspace treats them like unpaid salespeople (earning only a 6% commission on quotes) and cuts them off if projects don’t finalize. Karan, an interior-designer-turned-designer-manager, had this verdict: “Livspace wants wealth. They ask us to sell and sell – stuff that you know is a criminal waste”. A former in-house designer, Siddharth, quit saying Livspace’s model was all about sales targets, not design integrity. Even on Glassdoor, current employees lament severe work pressure: one 2025 review gave a 2.0 rating and simply stated as “Cons: very unprofessional company.. no help for new joinee”.

Employees also accuse management of deception. In a 2019 Glassdoor review titled “It’s a scam!”, a senior designer blasted the leadership: “Management comprises of inexperienced MBA guys who doesn’t have any skill in running a company… they hide all bad remarks by clients and designers… They post more positive reviews which misleads both new designer & new clients.”. In other words, the company is accused of manipulating reputations internally and externally to mask problems. These disclosures, coming from within, reinforce the consistent narrative of dishonesty seen on customer forums.

5. Consumer Reviews on Social Media and Aggregators:

Adding fuel, public review platforms are rife with one-star rants. On Trustpilot, Livspace’s TrustScore is a miserable 1.4/5, with 97% one-star reviews. Reviewers call it a “big looter” and a “big fraud company”. One recent review screamed: “FRAUD FRAUD FRAUD, BIGGEST FRAUD COMPANY. Unexperienced unprofessional [sic], USELESS daily wages staff, False promises, Delay in Work.”. Another: “Livspace is a big looter. They trap customers and squeeze their money… [and] wouldn’t stand on their promises at all.”. The language is harsh, but it echoes real anger.

On JustDial, Livspace in Pune boasts 4.6 stars overall, but a deeper look shows many 1-star blasts. One user describes a “fraud scam and trap” in big letters, recounting the bogus spot offer and price-hike routine. Another warns: “service is poor and products are not good”. The “Key Insights” summary on JustDial itself bluntly notes: “Many customers complained about lack of transparency in pricing… poor customer service… mistakes in measurements, non-compliance with requirements”. Even Good Reviews (on Q&A forums) sometimes come with caveats: a NoBroker user admitted “our experience was good, but… there were slight delays”, hinting at the lag common in other complaints.

Facebook and LinkedIn are similarly loaded with posts alleging fraud (though we cannot directly cite private posts). Consumers report Facebook support groups where members share “cases pending” and call for legal action. One LinkedIn user (as reported through Voxya and others) explicitly tagged Livspace as fraudulent, encouraging others to file complaints. The sheer volume – dozens of complaints on Voxya, multiple Reddit and Quora threads and a slew of “Livspace scam” Google hits – tells its own story: the discontent is pervasive.

Legal and Regulatory Implications:

All these cases of consumer grievances are not public only in recent times; we have recorded similar fradulent charges by Livspace in past also. As of now, the bulk of redress efforts seem to be under the Consumer Protection Act (2019) and public shaming.

Conclusion – Consumer Caution and Reality Check

In 2025, Livspace is far from the slick, reliable service it bills itself as. Instead, a chorus of dissatisfied customers, ex-workers, and vendors describe an organization more interested in extracting money than delivering on promises. The narrative thread is clear: “low-ball” the deal, lock in payment, then upcharge and cut corners. Whether it’s via Reddit posts, consumer court filings, review sites or media exposes, the consistent message is to be aware of Livspace!

We’ve quoted dozens of voices to let readers judge: from one customer’s blunt “fraud fraud fraud” to another’s vivid account of “hours each day fighting with frauds”, the evidence of widespread frustration is abundant. Even anonymous insiders warn that Livspace prioritizes sales targets over clients’ interests. If nothing else, potential customers should take note: Livspace has attracted far more headlines for angry reviews and complaints than for happy client stories.

In the words of one burnt customer on Trustpilot: “I will NOT be considering this company for my house interior project at all.”. Our verdict, grounded in the facts above, is a cautious one: proceed with extreme skepticism. Livspace’s glossy ads promise dreams, but until these pattern of problems are addressed, one may end up with nightmares (and an empty wallet) instead.