Pepperfry, the Mumbai-based ecommerce furniture startup gearing up for its IPO, revealed a 3% narrowing of its net loss in the financial year ending March 31, 2023. The net loss decreased to INR 187.6 Cr in FY23 from INR 194 Cr in the previous fiscal year. Founded in January 2012 by Ambareesh Murty and Ashish Shah, the startup specializes in selling furniture and home products through its website, ecommerce marketplaces, and offline stores.
The operating revenue of Pepperfry experienced a 10% rise, reaching INR 272.3 Cr during the year under review, compared to INR 246.9 Cr in the previous fiscal year. The startup primarily earns revenue through commissions by connecting customers with merchants on its platform, generating INR 241 Cr in FY23—an increase of 7.4% from INR 224.4 Cr in the previous fiscal year. Including other income, Pepperfry’s total income surged to INR 290.3 Cr, marking a 10% increase from INR 264.3 Cr in FY22.
Pepperfry’s overall expenses increased by 3% to INR 474 Cr from INR 458 Cr in FY22. Notably, the procurement cost, the startup’s major expense, rose by 36% to INR 282 Cr. Employee benefit expenses increased by 6% to INR 86 Cr, while advertising expenses decreased by 18% to INR 106 Cr in FY23.
In a bid to bolster its financial position, Pepperfry raised $23 Mn from existing investors in September. The startup has accumulated around $300 Mn across multiple funding rounds, counting Pidilite, Goldman Sachs, Bertelsmann India, and Innoven among its backers. Unfortunately, the passing of co-founder and CEO Ambareesh Murthy in August led to a leadership transition, with Ashish Shah assuming the CEO role.
Despite the challenges, Pepperfry has been actively preparing for its IPO since early 2022. The startup converted itself into a public entity in May last year but delayed its IPO plans, like several other startups, due to the market slowdown in equity markets. The company continues to navigate its path towards the public market as it positions itself among the key players in the competitive furniture ecommerce landscape, facing competition from the likes of Urban Ladder.
