Goldman Sachs-backed e-commerce firm Pepperfry reported ₹264-crore total revenue in FY22 as its net loss increased by 83 per cent to ₹194 crore from ₹106 crore net loss recorded in FY21.
The company attributed its losses to “sizable one-time investments made towards marketing and supply chain”. Pepperfry is reportedly eyeing a $250-300 million public listing by 2023 and is expected to file its draft red herring prospectus (DRHP) in the October-December quarter.
Pepperfry had spoken about IPO plans in 2021 as well but the plans were delayed because of the adverse market conditions. In terms of expenses, Pepperfry invested in marketing and brand especially in the second half FY22 to accelerate growth as the markets opened post second wave of Covid. The company has also spent on opening 7 new distribution centers to boost its supply chain.
The furniture and home goods company said 36 per cent of Pepperfry’s business comes from the customers who visit its offline stores (or studios). As of March 2022, Pepperfry Studio network (offline stores) included over 140 studios.
Commenting on the results, Ambareesh Murty, Co-Founder & Chief Executive Officer of Pepperfry, said, “With the worst effects of Covid behind us in the latter half of FY22, we invested behind our brand and supply chain, expanded our leadership team, and seeded new business segments such as mattresses and modular furniture. I am confident that these investments have set us up well to drive Pepperfry’s next phase of growth.”
Further, Pepperfry’s audited consolidated financials show a 33 per cent year-on-year rise in Gross Merchandise Value on the platform to ₹1,185 crore and revenue from operations was up 23 per cent year-on-year to ₹247 crore in FY22.
Launched in 2012 by Ambareesh Murty and Ashish Shah, Pepperfry has raised a total of $240 million in funding from investors like Norwest Venture Partners, Goldman Sachs, Bertelsmann India Investments, and State Street Global Advisors.