Companies

Pepperfry augments revenue stream with launch of B2B channel

Sangeetha Chengappa Bengaluru | Updated on January 08, 2018 Published on October 16, 2017

Ashish Shah, founder and COO, Pepperfry   -  Bijoy Ghosh

Online furniture marketplace plans to expand omni-channel network

Online furniture and home products marketplace Pepperfry’s recently launched B2B business has started contributing 8 per cent to it’s revenue, the company claims.

Pepperfry has partnered with builders and architects to design and provide looks for 1/2/3 BHK homes, which they in turn sell to home owners, receiving a commission for every sale.

“We launched B2B Projects a few months ago and have received a good response with 8 per cent of our business accruing from it. As part of our secondary business, we have also launched a channel partner programme, where we are building a community of freelance interior designers and architects who will help people design their dream homes,” Ashish Shah, founder and COO, Pepperfry, told BusinessLine.

The company has announced a ‘Privilege Partner Programme’ where member-architects and interior designers get free access to Pepperfry Studios, from where they can choose to work.

Members can avail themselves of a host of free concierge services such as travel services, golfing in major cities, wine and dine in restaurants in major cities, etc.

“Members can earn commissions of up to 8 per cent for business generated. We have already enrolled 298 architects and interior designers into the programme,” Shah said.

The firm has been growing its omni-channel network across the country through 22 Pepperfry-owned Studios in 11 cities, with plans to expand it to 20 cities by 2018.

On October 12, the company launched its first franchise studio in Bengaluru, in partnership with Prakruthi Enterprises, which is owned and operated by three partners.

The franchisee partners have over two decades of experience in managing high-growth franchise businesses for Titan, Fastrack, Helios and Titan EyePlus.

Franchise network

Stating that the Studio concept presents a unique proposition to build a large franchise business network, AR Ramaprasad, Partner, Prakruthi said the franchise store was set up with an investment of over ₹1.5 crore.

Franchise owners earn commissions on each online transaction made at the Studio. Pepperfry will manage the customer experience end-to-end, from pre-sales to post-sales.

Currently, 35 per cent of the sales on the online platform come from customers who have experienced the services extended at Pepperfry Studios.

“We will have 31 Studios by December and are on track to be the country’s largest omni-channel home furniture retailer with 48 Studios by March 2018,” Shah said. The company has signed up five more franchise stores in Indore, Goa, Lucknow, Visakhapatnam and Coimbatore.

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Published on October 16, 2017
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