TCC Concept To Acquire Pepperfry

BSE-listed TCC Concept has signed a term sheet to acquire up to 100% stake in D2C furniture soonicorn Pepperfry. 

“The proposed transaction is subject to inter alia completion of satisfactory due diligence of Pepperfry Limited, execution of definitive agreements and fulfilment of the conditions as may be applicable from time to time,” TCC Concept said in an exchange filing. 

For the uninitiated, TCC Concept operates across real estate services, including property brokerage, leasing, and flexible office solutions through its Brantford brand. It also engages in equipment rental and IT services, integrating technology into real estate operations.

The listed company didn’t disclose the financial details of the transaction. It said that Pepperfry’s acquisition would help it strengthen its presence in the ecommerce and digital marketplace space, complementing its core focus on tech-driven platforms.

“By integrating Pepperfry’s established furniture and home goods marketplace with TCC’s innovation and digital expertise, the company aims to enhance customer experience, create operational synergies, and unlock new growth opportunities,” the filing added. 

Inc42 has reached out to Pepperfry for comments on the acquisition. The story will be updated on receiving responses.

Founded in 2012 by the late Ambareesh Murty, along with 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 is pertinent to mention that Pepperfry has been dealing with losses for years. It reported a net loss of INR 117.5 Cr on an operating revenue of INR 188.9 Cr in FY24. While it managed to reduce its loss 37% YoY, its top line also declined about 31%. 

In June this year, it was reported that Pepperfry was eyeing raising about $5 Mn from its existing investors General Electric, Norwest Venture Partners and Goldman Sachs. Overall, Pepperfry raised over $305 Mn to date from investors like Bertelsmann India, InnoVen Capital, among others. Its last known private valuation was in the range of $350 Mn to $400 Mn.

The latest development comes almost a year after it was reported that Pepperfry was looking for a potential buyer. In September 2024, Moneycontrol reported that Pepperfry brought in investment banker Ambit to explore a buyer amid declining sales. 

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

The public listing plans were later shelved in 2024 as profitability continued to elude the startup. In July 2024, cofounder and CEO Shah told ET that the startup was aiming for a 10-15% revenue increase in FY25. 

Given the acquisition announcement, the profitability plans don’t seem to have panned out as expected.