Online furniture portal Pepperfry.com saw its net losses rising by 76% during FY16 at R155 crore, according to the company’s filing with the registrar of companies. During the period the company’s total revenue increased 292% to R98.3 crore. The revenue basically comprises commissions it gets from merchants on every sale of furniture items. It earns an average commission of 35% on every order.
“We have moved significantly ahead on our path to profitability. This year our revenue has grown almost threefold as we drove GMV (gross merchandise value) growth and expanded margins. While revenue has grown, we have contained loss growth to 76% by leveraging scale, making margin improvements and optimising general and administration expenses,” said chief financial officer Neelesh Talathi.
Total expenses stood at R253.21 crore, a 124% rise from R113.54 crore a year ago. Advertising promotional expenses surged 128% to R155 crore from R68 crore in FY15, according to the filing.
The employee benefit expenses increased 60% to Rs 23.6 crore as the company ramped up its category management and tech team in FY16.
In a recent interview to FE, Ashish Shah, founder and chief operating officer said that the company spends Rs 4 crore on logistics every month. Pepperfry delivers furniture to 500 cities through 17 distribution centres and has more than 1,000 merchants listed on its site. In September, Pepperfry opened its 10th studio at Kirti Nagar, the biggest hub for furniture in New Delhi. The studio does not sell furniture but functions as an experience store for customer engagement.
Pepperfry has raised $160 million in funding till date. In July 2015, the company had raised $100 million from Goldman Sachs and Zodius Technology Fund in a Series D funding. In the furniture space, Pepperfry competes with players such as Urban Ladder and FabFurnish. Urban Ladder is moving to single-brand retail and has applied for approval for the same, and Rocket Internet’s FabFurnish was acquired by Kishore Biyani’s Future Group in April.