Online furniture marketplace Pepperfry, sees a 3 fold loss in 2014-15 fiscal.
Pepperfry, the online furniture major, registered a loss of INR 30 crores in the year 2013-14. Compared to the previous fiscal, Pepperfry has seen a loss of INR 88 crores in the 2014-15 session.
Bengaluru | Feb 24, 2016 09:09 AM IST.
Pepperfry, which was founded in 2011, has received investments to the tune of $128 million till date, including that of venture majors like Goldman Sachs besides other investors. Other investors include Bertelsmann India and Norwest Venture Partners. The company was founded by former eBay executives Murty and Ashish Shah in 2011.Murty drew a salary of Rs 72 lakh in 2014-15.
Pepperfry’s revenues however, have been up to Rs.25 crore in the year compared to Rs.7.5 crore in the year it saw a loss of Rs.30 crore. The data revealed is as per the documents files by the company to Ministry of corporate affairs lately.
Pepperfry, whose major revenue generation is from commissions and it generates 93% of its revenues from same.Pepperfry saw its expenditure going up from Rs 37 crore in 2013-14 to Rs 114 crore in the following year. Its founder and CEO Ambareesh Murty told TOI that the company aims to become profitable in he next 12-18 months.
Pepperfry’s biggest competitor is Bengaluru-based Urban Ladder, which makes and sells its own furniture. Backed by Sequoia Capital, the company has raised $77 million so far and counts Tata Group chairman emeritus Ratan Tata as one of its angel investors. Urban Ladder had loss of Rs 59 crore in the year ended March 31, 2015, as compared to Rs 8 crore in the preceding fiscal. It reported a revenue of Rs 19 crore in 2014-15, up from Rs 12 crore 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 fulfillment 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.