Pepperfry Shelves IPO Plans, To Focus On Growth, Profitability

D2C furniture brand Pepperfry has reportedly postponed its initial public offering (IPO) plans after engaging with bankers over the past year to enter the public market, founder and CEO Ashish Shah told ET.

As per ET’s report, citing founder and CEO Ashish Shah, the company will instead focus on growth and profitability in the current financial year.

Founded in January 2012 by late Ambareesh Murty and Shah, Pepperfry sells a wide range of furniture and other home products through its website, ecommerce marketplaces, and offline stores. 

The company has been preparing for its initial public offering (IPO) since early 2022. In line with this, it even converted itself into a public entity in May 2022. 

“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,” Shah told ET.

Inc42 has reached out to the company for comments on the development. The story will be updated based on the response.

The startup posted a marginal decline in its net loss for the financial year ending March 31, 2023. The Mumbai-based startup’s net loss decreased by 3% to INR 187.6 Cr in FY23, down from INR 194 Cr in the previous fiscal year.

According to ET, Pepperfry is aiming for a 10-15% revenue increase this fiscal year, driven by rising property sales and higher consumer spending on furniture and home decor. 

Shah said that with a continued focus on profitability, the furniture and home marketplace has reduced its cash burn by a third compared to 2023. 

It is pertinent to note that the home decor industry is experiencing a notable shift, with the online market projected to grow to $5.4 Bn by 2025

Last September, Pepperfry raised $23 Mn from its existing investors, which include institutional investors and family offices. To date, it has raised around $300 Mn across multiple rounds, with backers such as Pidilite, Goldman Sachs, Bertelsmann India, and Innoven.

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