Pepperfry's revenue drops 31% in FY24; losses narrow by 37%

Furniture and home goods company Pepperfry reported a 30.6% year-on year decline in operating revenue to Rs 188.9 crore for 2023-24, even as it managed to cut losses.

The Mumbai-based company reduced its losses by 37.4% to Rs 117.4 crore in FY24, down from Rs 187.6 crore in the previous year, primarily due to lower expenses, according to filings sourced from Tofler.

Pepperfry had been in discussions with bankers over the past years for a potential initial public offering (IPO) but has since postponed its plans, as reported by ET. The startup had converted into a public company in 2022 in preparation for the proposed IPO, which aimed to raise $250-300 million.


The company’s total expenses fell to Rs 326.7 crore in 2023-24 from Rs 474 crore in previous year. Advertising and promotional costs nearly halved to Rs 58.5 crore, while employee benefit expenses declined to Rs 60.5 crore from Rs 86.1 crore.

Founded in 2012, Pepperfry competes with ecommerce leaders such as Amazon and Flipkart, as well as Reliance Industries-owned Urban Ladder. The company generates most of its revenue from commissions on product sales. Revenue from the sale of goods and services stood at Rs 183.9 crore, accounting for 97% of total operating revenue. Other income sources include brand licence fees and studio rental income.

Pepperfry is focusing aggressively on expanding its home decor segment. To strengthen its portfolio, the company has onboarded multiple direct-to-consumer (D2C) brands, CEO Ashish Shah told ET earlier.

The company last raised $23 million from its existing shareholders in September 2023. Norwest Venture Partners, Goldman Sachs, and Pidilite Ventures are among Pepperfry’s key investors.

On September 5, 2023, it elevated cofounder Shah to the CEO role following the sudden demise of former CEO Ambareesh Murty due to cardiac arrest.