Pepperfry Postpones its IPO Plan, To Revive its Growth

Pepperfry, an omnichannel furniture retailer, has decided to postpone its initial public offering (IPO) plans after consulting with financiers for the past year in preparation for the public market.

In accordance with its proposed initial public offering (IPO), the startup transitioned to a public company in 2022. The company was seeking to raise $250-300 million through an initial public offering (IPO).

The organization intends to achieve a 10-15% increase in revenue by the conclusion of this fiscal year, with sequential growth occurring each month. The increase in consumer spending and the surge in property sales throughout India will facilitate the increase in orders for home décor and furniture, according to him.

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Pepperfry, which is headquartered in Mumbai, experienced a marginal increase in revenue in FY23, reaching Rs 272.3 crore from Rs 247 crore in FY22, according to the most recent available data. Shah stated that the decrease in discretionary expenditure was the cause of the subdued performance and that the company is adjusting its strategy to attain consistent growth. In comparison to Rs 194 crore in FY22, Pepperfry's net loss in FY23 was Rs 187.6 crore. The financials for FY24 have not yet been submitted.

Pepperfry has recently prioritized home decor as a category. The company has integrated numerous direct-to-consumer (D2C) brands in order to expand its portfolio.
At present, Pepperfry generates 60% of its revenue through the sale of household decor. Additionally, the retailer intends to introduce additional private-label brands and has initiated display services for retail brands in its studios as an additional revenue source.

Ashish Shah,CEO and founder, Pepperfry, said: “We have postponed our IPO plans for the time being. There are other important areas to focus on in the business. From a cost standpoint, we are strong. Therefore, we are focusing on growth now. We aim to go slow but get solid growth, which is also profitable. If we can continue this growth for 8-10 months, we will be IPO-ready,”

About Pepperfry

Founded in 2011 by Ambareesh Murty and Ashish Shah, Pepperfry, India’s leading e-commerce marketplace for furniture and home goods. In the last decade, Pepperfry has disrupted the tenets of classical retail by combining an online virtual catalog, an extensive in-house supply chain, and a large omnichannel footprint covering more than 100 cities in India. 

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