The company is also looking to grow its footprint in tier II cities.
Furniture retailer has announced the aggressive plans to achieve the break-even point and attain profitability over next 12-18 months. With the vision to be in 20 million homes by 2020, this omni-channel retailer is expanding with a CAGR of 83%. So far, Pepperfry has overall raised INR 1300 cr after its recent fund raise of INR 250 cr from SSGA in March 2018. Its other investors include Goldman Sachs, Norwest Venture Partners, Bertelsmann India Investments and Zodius Technology Fund.
So far, the company has 32 (owned and franchise) Studios across the country and plans to expand to 70 by the end of April 2019, thereby entering Tier II cities as well. In an exclusive interaction with indianretailer.com, Hussaine Kesury, Chief Category Officer, Pepperfry informed, “We make 45% gross margin and are already profitable at the pre-marketing level with the goal of turning profitable in the next 12-18 months.”
Pepperfry Studios are unique concept stores, which allow consumers to experience and assess the material, quality and make of the product.
India’s furniture market looks promising with a projection to cross $32 billion by 2019, according to a TechSci Research report. While the total offline market is growing at 10-15% YoY, the online component is growing at 300% YoY. “Over the next few years, we expect the online home and furniture (H&F) business to become 9% of overall ecommerce, 6% of the overall H&F market,” informed Kesury.
Pepperfry, in a short span of 6.5 years has expanded in the online home and furniture products category. As per the information provided by the company, Pepperfry holds 60%+ market share of the online traffic in this segment. The company is presently associated with more than 10,000 sellers and 900+ leading brands within the furniture and home segment.
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