Bertelsmann-backed Pepperfry’s FY23 revenue up 10% YoY as it doubles down on retail expansion
In September, Pepperfry elevated Ashish Shah to the role of CEO. It also raised $23 million in funding from existing investors, institutional investors, and family offices.
Furniture company earned revenue from operations of Rs 272.3 crore in the financial year ended March 2023, up by a modest 10% from the previous year, indicating that the firm’s bet on expanding its omnichannel presence is fructifying.
The Mumbai-based firm’s loss narrowed to Rs 187.6 crore in FY23 from Rs 194 crore in the year-ago period. Total expenses, however, increased marginally to Rs 474 crore in the year ended March 2023.
In August, Co-founder and CEO Ambareesh Murty passed away in Leh due to a cardiac arrest. Murty's contribution is said to have helped the company become one of the country's largest ecommerce marketplaces for furniture, with a valuation upwards of $460 million, as per data from market intelligence firm Tracxn.
The retailer elevated Chief Operations Officer Ashish Shah—who was in charge of operations, category management, product, and the omnichannel business–to the position of CEO a month later. "Ashish has played a pivotal role in shaping Pepperfry's customer-centric strategy, supply side strengths, and operational excellence," Pepperfry had said in a statement.
It also raised $23 million in funding from existing investors, institutional investors, and family offices around the same time. The capital infusion is also expected to help the furniture company inch towards profitability, the company said in September, adding that "the milestone is now within close reach."
Founded in 2012 by Murty and Ashish Shah, Pepperfry was started as a horizontal online marketplace focused on fashion and lifestyle. After undergoing a few iterations, it has now become one of the country's largest tech-driven furniture retail firms with 190 retail studios in over 100 cities. It claims to have a customer base of more than 10 million with retail connections in over 500 cities.
To date, the firm has raised upwards of $230 million in funding from Norwest Venture Partners, Bertelsmann India Investment, Goldman Sachs Investment Partners, and General Electric Pension Trust, as per data from Tracxn. It last raised $40 million in a Series F funding round in February 2020.
Pepperfry competes with omnichannel players, including Furlenco, Wooden Street and HomeLane, as well as online marketplaces like Amazon and Walmart-owned Flipkart.
The company is reportedly looking to get listed in the public markets to raise $250-300 million this year after it postponed IPO plans citing tough macroeconomic conditions.
“The best tribute to Ambareesh will be to build on the foundation laid by us and fortify Pepperfry's position as India's leading furniture and home products company,” Shah had said in a statement.
Edited by Affirunisa Kankudti