Furniture retailer Pepperfry has witnessed positive outcomes in FY18. The financial statement for the last fiscal recorded a 20 per cent growth in revenue to Rs 308.46 crore from Rs 257.96 crore in FY17.
The Goldman Sachs-backed company has also managed to reduce losses by 32 per cent to Rs 169.26 crore in FY18 from Rs 248.50 crore in FY17.
Besides, Pepperfry achieved 17 per cent year-on-year reduction in expense through tight budget controls.
Pepperfry attributed the growth chart to supply chain automation, high vehicle utilisation, improved delivery success rates, and staff productivity.
The company eyes a revenue growth of 40 to 70 per cent for the next fiscal. Since the company is planning to expand its product portfolio to become a ‘full stack’ interior solutions provider, the further reduction in losses may take a longer time.
With $197 million total risk capital, Pepperfry claims to have over 65 per cent market share of India’s organised furniture market.
Besides furniture, the company has expanded in-house brands such as Clouddio for mattresses, enhanced its modular furniture offering and introduced services like Furniture Exchange.
The furniture retailer has also doubled the footprint Pepperfry Studio, its offline experience stores to 28 and aims to open 50 such stores by March next year.
Pepperfry directly competes with Sequoia Capital-backed Urban Ladder and Walmart-owned Flipkart. Interestingly, Swedish furniture giant IKEA, which is planning to go for multichannel operation by early next year is expected to pose serious competition to Pepperfry and others in the segment.