Pepperfry’s FY24 Revenue Declines 31% To INR 189 Cr

D2C furniture startup Pepperfry managed to cut its net loss by 37.4% to INR 117.5 Cr in the financial year 2023-24 (FY24) from INR 187.6 Cr in the previous fiscal year. 

However, the decline in loss came at the cost of its top line. The startup’s revenue from operations plunged nearly 31% to INR 188.9 Cr during the year under review from INR 272.4 Cr in FY23. 

Including other income of INR 20.3 Cr, total income for the fiscal stood at INR 209.2 Cr. This was a 28% dip from a total income of INR 290.4 Cr in FY23. 

Meanwhile, EBITDA loss contracted 52.2% year-on-year (YoY) to INR 43.6 Cr during the year under review. 

Founded in 2012 by the late Ambareesh Murty and Ashish Shah, Pepperfry sells a wide range of furniture and other home products through its website, ecommerce marketplaces, and offline stores. The startup claims to serve in more than 6,500 pin codes across 173 cities in India.

It also has over 200 studios, showcasing a wide range of furniture from its online portfolio. Additionally, it offers services such as customisation of furniture and advice related to designs from interior design consultants.

Pepperfry has raised over $305 Mn from investors like Norwest Venture Partners, Goldman Sachs, Bertelsmann India, among others, to date. It last raised $23 Mn in September 2023.

The startup also nursed plans to go public in the past. After converting into a public company in May 2022, the online furniture startup planned to go for an initial public offering (IPO) in the second half of that year.

However, it reportedly shelved its IPO bid in 2024 and decided to focus on growth and profitability instead. Cofounder Shah told ET in July last year that the startup was aiming for a 10-15% revenue increase in FY25.

However, the startup’s plans to turn profitable don’t seem to have panned out as expected. In September 2024, Moneycontrol reported that Pepperfry brought in investment banker Ambit to explore a buyer amid flatlining sales. 

Citing people aware of the developments, the publication said that the brand was on the lookout for a potential buyer or even a strategic acquisition by a larger player if the deal terms were favourable.

Where Did Pepperfry Spend?

The D2C startup’s total expenses fell 31.1% to INR 326.7 Cr during the year under review from INR 474.1 Cr in the previous fiscal year. 

Employee Benefit Expenses: Pepperfry spent INR 60.6 Cr on its employees in FY24, down 29.7% from INR 86.2 Cr in the prior fiscal.

Marketing Expenses: Pepperfry cut its marketing expense by nearly 45% to INR 58.6 Cr from INR 106.2 Cr in FY23. 

Miscellaneous Expenses: Pepperfry’s miscellaneous expenses declined 27.3% YoY to INR 46.22 Cr in FY24. The category included contract expenses, order fulfillment costs, transaction processing charges, among others.