Online furniture retailer Pepperfry is planning to launch its maiden public offer in the next 12-15 months, according to a top company executive. Pepperfry IPO will closely follow the company’s transition to a profitable model, company CEO Ambareesh Murty told the Mint newspaper on the sidelines of opening a new warehouse in Bengaluru. Murty added that Pepperfry is very close to achieve breakeven point and is likely to show full year profits in FY2021.
“We plan to file for an initial public offering (IPO) in the next 12-15 months,”
Ambareesh Murty, CEO, Pepperfry
Pepperfry IPO: Building scale
The Bengaluru warehouse expands the company’s reach in south India which is the largest market for Pepperfry, contributing nearly 40% to the top line. The 360,000 square feet warehouse is technologically most advanced for the company and trumps the other “mother hub” warehouses in Mumbai and Gurugram. Capable of processing 1,000 orders a day, the warehouse is clearly enhancing the capabilities of the company which gets nearly 3,000 orders every day.
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“The facility is well placed to cater to the surging demand in south India, thereby resulting in reduced transit times, reduction in long-haul movement costs and decline in return rates,” added Murty.
Pepperfry claims to have more than 60 lakh (6 million) registered users and gets 1.2 crore (12 million) monthly visits. Its marketplace offers over 1.2 lakh products to choose from which can be delivered in 500 cities.
In an earlier interview, Murty said the company’s gross margins are around 55% and net margins above 20%. The company competes with other online furniture retailers like Urban Ladder, Fab Furnish, and home décor marketplace Livspace.
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Backed by the likes of Norwest Venture Partners, Goldman Sachs, State Street Global Advisors, and Bertelsmann India Investments, Pepperfry has raised close to USD200 million from investors so far. Separately, the company was tipped to raise USD100 million from investors for expanding its offline presence and diversify.
