Pepperfry looks to file draft IPO papers coming quarter

September 22, 2022

Omnichannel cabinetwork dealer Pepperfry is likely to file draft papers for an original Public Offering (IPO) in the October- December quarter, and aims to list intimately coming time, a person apprehensive of the matter said. ET reported before this time that Pepperfry was in addresses to raise $250-$300 million through the IPO. “They’re looking to file the draft red herring prospectus (DRHP) (with India’s capital requests controller Sebi) in the posterior quarter,” the source said. The company will take a final call on the matter by November, the person added.

The company has appointed JP Morgan and ICICI Bank NSE-1.03% to lead the IPO trouble. The Mumbai- grounded ecommerce player was last valued at around $500 million when it raised capital in 2020. Meanwhile, Pepperfry – among the last many standalone online cabinetwork platforms – said profit from operations grew over 22% to about Rs 247 crore in FY22. This came on a drop in the metric by 10 in FY21 because of Covid- 19.

Pepperfry earns profit from the commissions it charges for deals on its platform. The company posted a gross wares value (GMV) of Rs1,185 crore in FY22. Losses increased by 83% to Rs 194 crore in the same period.

Pepperfry cofounder and principal superintendent Ambareesh Murty told ET that losses widened due to advanced charges, including hand hires and marketing. Force costs also increased over six-fold to further than Rs 20 crore. Murty attributed this to the opening of 140 physical stores, called Pepperfry Studios. These stores, he said, now induce about 36% of its deals, and that 99% of deals are generated through its own channels. “We piloted dealing on Amazon and Flipkart, but that was lower than 1% of our business division,” Murty said.

The e-commerce commerce has continued to invest in the cabinetwork order, indeed as Urban Ladder, the other cabinetwork- riveted, new- frugality company, was acquired by Reliance diligence NSE-0.77% in November 2020. Murty said Pepperfry ramped up its tech hiring last time to include technologies similar as stoked and virtual reality, and also doubled down on elevations through Bollywood celebrities similar as Saif Ali Khan and Kareena Kapoor.


He said profit was anticipated to increase going forward, without a corresponding increase in costs due to operating influence. In the former financial time, the company also made a trouble to increase deals to abovepre-Covid-19 situations.

“Our entire rebase task ended in March,” said Murty. “Thus, what you’ll see in posterior diggings in this fiscal time is the fact that earnings would be going up and principally marketing as a cost of overall deals would be coming down.” The authors dislocated its headquarters from the Cayman islets to Mumbai last time. The earlier plan was to list in the US request.

The strategy was changed as the Securities and Exchange Board of India (Sebi) doesn’t allow foreign-listed companies to go in for an IPO in India. The company also changed its board composition, roping in independent directors to meet original capital request laws.

Rules bear that 33 of the board should have independent directors if the president is an independent director. The company appointed Sanjay Baweja, CEO of On Mobile Global NSE 0.50%, and Malini Parmar, cofounder, as independent directors in September.

Several tech companies have put their public request rosters on hold. Healthtech incipiency Pharmeasy lately decided to withdraw its IPO operation despite Sebi’s concurrence, citing request conditions, while SoftBank- backed Oyo hospices and Homes and ecommerce company Snapdeal have yet to get the capital requests controller’s nod to go public.