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Omnichannel furniture retailer Pepperfry trims losses in FY20

Omnichannel furniture retailer Pepperfry trims losses in FY20
Photo Credit: Pixabay
9 Feb, 2021

Omnichannel furniture retailer Pepperfry trimmed losses by 33.34% on a standalone basis for the financial year ending March 31, 2020.

Pepperfry’s standalone losses stood at Rs 122.31 crore, down from Rs 183.48 crore in FY19. 

Revenue from operations were reported at Rs 246.03 crore, jumping 27.31% from Rs 193.25 crore in FY19. Total revenue from the period grew to Rs 260.61 crore as compared to Rs 206.78 crore last year, according to regulatory filings.

Total expenses reduced to Rs 382.93 crore from Rs 390.26 crore in FY19.  Advertising promotional expenses decreased 24.23% to Rs 128.85 crore.

“In continuation of the strategy to increase its focus on the development of the Company’s own brands, Company will continue to explore ancillary business opportunities both in India and abroad,” the company said in the report. Pepperyfry currently has around nine brands and plans to spend more on pushing these private labels.

In an interview with Mint in September 2020, co-founder and CEO Ambareesh Murty mentioned that the company is looking to file for an IPO in the next one year. This comes at a time when competition in the organised furniture business has increased. In the past few months, the space has seen several major developments including expansion Swedish conglomerate IKEA’s stores in India and consolidation with Reliance Retail buying out rival Urban Ladder. 

Pepperfry along with Trendsutra Client Services are the two operating Indian subsidiaries under holding company Trendsutra Cayman Holdings. Trendsutra Client Services trimmed losses by nearly 49.55% on a standalone, even as total revenue halved in the financial year ending March 31, 2020. Its standalone losses stood at Rs 33.62 crore, down from Rs 66.63 crore in FY19.