Furniture retailer Pepperfry is at the peak of profitability and plans to go public early next year, planning to tap the capital market.
“We set a profitability target for the early part of next year,” Ambareesh Murthy, co-founder and CEO, said in an interview. “In August, we almost broke up. We are filing for an IPO in 12-18 months. For IPOs, a track record of at least 6-9 months of profitability is important to show that the business is capable of making money. In 6–12 months, we will not only focus on profitability, but will also use the opportunity to develop. There is no scope for decency, and we need to implement the way we do it. “
Pepperfree’s IPO plans have come at a time when discretionary sectors, including furniture retail, have been hit by the Kovid-19 lockdown and economic crisis.
Pepper is not alone. Despite the disintegration from the epidemic, startups Zomato, Delhivery, MobiKwik and PolicyBazaar are considering going public in the next two years. Walmart-owned Flipkart may also go for listing next year, Mint reported on 16 September. Last year, Pepperfree said it had started the process of planning an IPO.
Pepperfry competes against Flipkart and Amazon, including urban ladders, small startups and horizontal marketplaces. Urban sales are reported to be potentially in negotiation for sales.
According to data from RedSeer Consulting, India’s online furniture market grew at an annual average pace of around 80-85% to touch $ 700 million in 2019-20. But online accounts for less than 3% of the total furniture market at $ 17 billion. Murthy said that despite the initial disruption during the lockdown, various actions helped the company move towards profitability. “We do more business today than we did in January-February. This became possible because we own our own supply chain, although this is difficult for the rest of the furniture industry. Building an omnichannel business, investing in brands and many private labels are other things that have benefited us, ”he said.
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