Pepperfry converts itself into a public company ahead of its IPO
- ByStartupStory | May 21, 2022
Pepperfry, an online furniture marketplace, has transformed into a public business ahead of its upcoming IPO. According to regulatory papers, Pepperfry’s board of directors has approved a resolution to turn the Mumbai-based online furniture business public. Following the conversion, the company changed its name to Pepperfry Limited. It will list on the stock exchange in the second half of 2022.
However, after seeing the poor success of new-age businesses such as Paytm, Zomato, and Nykaa on the stock exchanges, it may postpone its IPO ambitions. Pepperfry, which was founded in January 2012 by Ambareesh Murty and Ashish Shah, sells a variety of furniture and other home products on its website, including mattresses, dining and bar furniture, carpets, appliances, and garden and outdoor, and more. It also has a physical presence through its franchise model.
The company claims to have nearly 73 showrooms with over 140 studios through its franchise model while 35% of its sales come from studios. It also secured $40 million in a debt funding round from Norwest Venture and General Electric Pension Trust last year in November. New investors like Hema Ravichandar and V Ravichandar, Chhaya Assets, and Burjorjee Family Trust, among others, contributed roughly Rs 7.5 crore to the round.
Norwest Ventures (29.40%), Broad Street Investments (21.09%), Bertelsmann (18.64%), and General Electric Pension Trust (12.29%) are among the company’s major shareholders, while founders Ambareesh Murty and Ashish Shah own 4.35% and 1.45%, respectively.
In FY21, Pepperfry’s operating revenue decreased by 14% to Rs 203.4 crore, down from Rs 236.3 crore in FY20. At the same time, it reduced its losses by 61.6% in FY21, from Rs 122.8 Cr in FY20 to Rs 47.2 Cr in FY21.
In the online furniture sector, Pepperfry competes with WoodenStreet, which raised $30 million, Arrive, which raised Rs 75 million, and UpScalio-backed Green Soul. The relatively unorganised furniture sector in India offers enormous prospects for new companies. According to a survey, India’s entire furniture industry is expected to reach $37.72 billion by 2026, rising at a CAGR of 13.37% between 2020 and 2026, while the country’s online furniture market is expected to reach $40 billion by 2026, according to another report.
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