Pepperfry to File for IPO Next Quarter; revenue exceeds pre-covid mark
- ByStartup Story | September 22, 2022
According to reports, the furniture retailer Pepper fry will submit draft documents for an initial stock sale in the next quarter and seek to list in the markets the following year.
It comes months after the company postponed its preparations for an initial public offering (IPO) due to unfavorable market circumstances. The Economic Times reports that Pepperfry intends to raise between $250 million and $300 million through the sale of public shares, with JP Morgan and ICICI Bank leading the way.
Additionally, the Mumbai-based company recorded a 23% increase in operating revenue to Rs 247 crore for the fiscal year ending March 2021, showing a return to pre-pandemic levels. Its losses increased by 83% over the same period due to higher staff compensation and marketing costs. In the same year, marketing costs jumped 79% to Rs 129 crore.
Ambareesh Murty, co-founder and CEO of Pepperfry, told ET that the company’s losses have increased due to increased expenses, such as staff compensation and marketing.
Additionally, inventory spending has increased six-fold to well over Rs 20 crore. Murty attributed this to the launch of 140 physical Pepperfry Studios outlets. He said these outlets currently contribute about 36% of the company’s revenue and 99.9% of its sales are generated through its own channels. “We piloted selling on Amazon and Flipkart, but that was less than 1% of our retail division,” Murty said.
“Pepperfry invested behind marketing and brand, particularly during H2FY22 to rapidly accelerate growth as markets opened up after the second wave of Covid, to re-found the business and drive traction,” the company wrote. company in a press release.
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