According to reports, Pepperfry furniture retailer will submit draft documents to sell shares in the next quarter. They will then seek to list on the markets the following year.
This is months after the company delayed its preparations for an initial publicly offered (IPO) due to adverse market conditions. According to the Economic Times, Pepperfry plans to raise between $250 million and $300 million through the sale of public stock. JP Morgan and ICICI are the driving forces behind the effort.
The Mumbai-based company also saw a 23% rise in its income from operations to Rs 247 crore in the fiscal year that ended in March 2021. This is a return to pre-pandemic levels. Due to increasing marketing and personnel costs, its losses increased by 83%. Marketing costs rose 79% to Rs. 129 crore in the same year.
Pepperfry’s co-founder and chief executive officer, Ambareesh Murty told ET that Pepperfry’s losses increased due to increasing expenditures such as marketing and staff pay.
Inventory expenses soared sixfold to well above Rs 20 crore. Murty explained that this was due to the opening of 140 Pepperfry Studios physical stores. These outlets contribute approximately 36% to the company’s current revenue, and 99.9% of its sales come from its own channels. Murty stated that while we tried selling on Amazon and Flipkart in the pilot, it was less than 1% for our business division.
The company stated in a statement that Pepperfry had invested in Marketing and Brand, in particular in H2FY22 in order to accelerate growth in markets after the second wave of Covid. This was to re-base and drive traction.