Pepperfry to file IPO draft next quarter; revenue exceeds pre-covid mark
- ByStartupStory | September 22, 2022
According to reports, furniture retailer Pepperfry will submit draft documents for an initial share sale in the next quarter and will seek to list on markets in the following year.
This comes months after the business postponed its preparations for an initial public offering (IPO) owing to unfavorable market circumstances. The Economic Times reports that Pepperfry intends to generate between $250 and $300 million via the sale of public shares, with JP Morgan and ICICI Bank driving the drive.
In addition, the Mumbai-based firm recorded a 23% increase in income from operations to Rs 247 crore for the fiscal year ending in March 2021, showing a return to pre-pandemic levels. Its losses grew by 83% over the same time period due to rising personnel compensation and marketing costs. In the same year, marketing costs jumped 79% to Rs 129 crore.
Ambareesh Murty, co-founder, and chief executive officer of Pepperfry, told ET that the company’s losses grew owing to rising expenditures, such as staff pay and marketing.
Furthermore, inventory expenses surged sixfold to well over Rs 20 crore. Murty ascribed this to the launch of 140 Pepperfry Studios physical outlets. He said that these outlets currently contribute around 36% of the company’s revenue and that 99.9% of its sales are generated via its own channels. “We piloted selling on Amazon and Flipkart, but that was less than 1% of our business division,” Murty said.
“Pepperfry invested behind Marketing and Brand particularly in H2FY22 to rapidly accelerate growth as markets opened post second wave of Covid, to re-base the business and drive traction,” the company wrote in a statement.
Follow Startup Story
Related Posts
