Pepperfry, a direct-to-consumer furniture brand, has postponed its initial public offering (IPO) plans, according to founder and CEO Ashish Shah. Despite preparations since early 2022, the company, which converted to a public entity in May 2022, is now prioritizing growth and profitability for the current fiscal year.
Founded in 2012 by Ambareesh Murty and Ashish Shah, Pepperfry sells furniture and home products online, through e-commerce platforms, and offline stores. Shah stated, “We have postponed our IPO plans to focus on strategic business areas. Our financial position is strong, allowing us to concentrate on sustainable growth and profitability.”
Pepperfry reported a 3% decrease in net loss to INR 187.6 Cr for FY23, down from INR 194 Cr the previous year. The company aims for a 10-15% revenue increase this fiscal year, driven by property sales and rising consumer spending on home decor. Shah highlighted a significant reduction in cash burn compared to 2023, emphasizing their commitment to profitability.
The online home decor market is projected to reach $5.4 Bn by 2025, reflecting industry growth. Pepperfry remains active in this evolving market, having raised $23 Mn last September from existing investors, totaling $300 Mn across multiple rounds from backers like Pidilite, Goldman Sachs, Bertelsmann India, and Innoven.
