Pepperfry IPO: Why furniture e-retailer’s public issue plans are on hold

New Delhi: E-commerce company Pepperfry has decided to delay its initial public offering (IPO) plans. Instead of pursuing the IPO immediately, the omnichannel furniture retailer will focus on enhancing growth and profitability throughout the current financial year. Founded in 2012, Pepperfry aimed to go public and raise $250-300 million in 2022.

“We have postponed our IPO plans for now to prioritise other critical areas of our business. Our financial position is robust, so our focus is on driving growth. We are aiming for steady, profitable growth over the next 8-10 months to prepare ourselves for a potential IPO,” said Pepperfry founder and CEO Ashish Shah in an interview.

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Is Pepperfry profitable?

Pepperfry’s revenue for FY23 marginally rose to Rs 272.3 crore from Rs 247 crore in FY22. Shah attributed this growth to discretionary spending cuts. Pepperfry earns revenue mainly through commissions from product sales. The company aims to achieve sequential monthly revenue growth throughout the fiscal year, aiming for a 10-15 per cent annual revenue rise led by strong property sales and consumer spending trends in India.

The company has significantly cut cash burn and aims to optimise studio operations, which led to a 15 per cent rise in business growth over the previous year.

What is the main driver of Pepperfry’s sale

Currently, Pepperfry derives 60 per cent of its sales from home decor and is intensifying its focus on this category. To diversify its offerings, the company has onboarded multiple direct-to-consumer (D2C) brands and plans to launch additional private-label brands. It has begun offering display services for retail brands in its studios to boost revenue streams.

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Who are the main investors in Pepperfry?

Pepperfry’s key investors include:

Norwest Venture Partners
Goldman Sachs
Pidilite Ventures

After the untimely death of Pepperfry co-founder Ambareesh Murty, Shah was elevated to the role of CEO. The company faces competition from e-commerce giants such as:

Amazon India
Flipkart
Reliance Industries-owned Urban Ladder

 Pepperfry IPO: Pepperfry generates its revenue primarily through commissions from product sales. Pepperfry derives 60 per cent of its sales from home decor and is intensifying its focus on this category.  Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today