Furniture and home products online marketplace Pepperfry has recently reported a 3X loss of 88 cr compared to 30 cr it registered in the previous fiscal. As per the documents filed with the ministry of corporate affairs, company’s revenue splurged to 25 cr in the year as compared to 7.5 cr in the previous fiscal.
Founded in 2011 and with investment of around $128 million from various investors, including Goldman Sachs, Pepperfry nabs around 93 percent of its revenue from commissions. With increasing expenditure the company aims to become profitable in the coming 12-18 months.
The furniture aggregator competes with the like of Bengaluru-based Urban Ladder that makes and sells its own furniture. The firm is backed by Sequoia Capital and has raised around $77 million as of now. Urban Ladder had loss of 59 cr in the year ended March 31, 2015, as compared to Rs 8 crore in the preceding fiscal. It reported revenue of 19 cr in 2014-15, up from Rs 12 cr in 2013-14.
Pepperfry has 20 lakh registered customers, and 50% of its customers are repeat buyers. It has five lakh app downloads. It has 17 fulfilment centres, which also act as places to do quality checks and assembly - catering to over 5,000 sellers on the platform. The average selling price of furniture on the platform is Rs 14,000, but including other items it sells, the average selling price is Rs 6,000.