Pepperfry IPO: Pepperfry makes its revenue primarily through commissions on product sales. Pepperfry derives 60% of its revenue from home décor and is increasing its focus on this category.
Pepperfry postpones IPO plans: Here's why (Photo credit: X/ @Pepperfry/ depositphotos)
New Delhi: E-commerce company Pepperfry has decided to postpone its initial public offering (IPO) plans. The omnichannel furniture retailer will focus on growth and profitability throughout its current fiscal year rather than immediately pursuing an IPO. Founded in 2012, Pepperfry had been aiming to raise $250 million to $300 million by going public in 2022.
“We have postponed our IPO plans for now to prioritize other key areas of the business. Our financial position is strong and our focus is on driving growth. We aim to achieve steady, profitable growth over the next eight to 10 months and prepare for a potential IPO,” Pepperfry founder and CEO Ashish Shah said in an interview.
Ganesh Green Bharat IPO Application
Is Pepperfry making a profit?
Pepperfry's revenue rose slightly to Rs 2.72 billion in FY23 from Rs 2.47 billion in FY22. Shah attributed the growth to lower discretionary spending. Pepperfry primarily earns revenue through commissions on product sales. The company is targeting a 10-15 percent increase in annual revenue and sequential monthly revenue growth throughout the fiscal, driven by favorable property sales and consumer spending trends in India.
The company is looking to significantly reduce its cash burn and optimize its studio operations, which has resulted in 15 percent business growth year-over-year.
What is the main driver of Pepperfry sales?
Currently, Pepperfry derives 60% of its sales from home décor and is focused on this category. The company has onboarded several D2C (direct-to-consumer) brands to diversify its offerings and plans to launch more private labels. To increase revenue streams, the company has also started providing display services for retail brands in its studios.
Status of Effwa Infra IPO
Who are Pepperfry's main investors?
Pepperfry's major investors are:
- Norwest Venture Partners
- Goldman Sachs
- Pidilight Ventures
Shah was elevated to CEO after the untimely death of Pepperfry co-founder Ambareesh Murthy, and the company faces competition from e-commerce giants such as:
- Amazon India
- Flipkart
- Reliance Industries' Urban Ladder
