Furniture and home products marketplace Pepperfry hopes to become a `6,500-crore company by 2020, of which `3,000 crore is expected to come from its in-house brands .
Furniture and home products marketplace Pepperfry hopes to become a Rs 6,500-crore company by 2020, of which Rs 3,000 crore is expected to come from its in-house brands. The company, which closed FY17 with a Rs 1,000-crore turnover, hopes to turn profitable in the next 12-18 months, Pepperfry chief category officer Hussaine Kesury said.
The marketplace is also planning to talk to Swedish furniture major Ikea, which is opening its first store in Hyderabad, for offering its online platform. “We are open to talks with Ikea to sell their products on our marketplace,” Kesury said. Betting on its in-house brands, the company is targeting the tier II cities as it plans an aggressive expansion. With a vision to be in 20 million homes by 2020, it is expanding with a CAGR of 80% and is building brand extensions.
“We make 45% gross margin and are already profitable at the pre-marketing level and will turn profitable in the next 12-18 months,” Kesury said. On a query about Ikea setting up operations in India, he said: “We are open to talks with Ikea to sell their products on our marketplace.” Pepperfry holds 60% market share of the online traffic in this segment, according to a data from Similarweb, a digital market intelligence platform which tracks online traffic.
The company is currently associated with more than 10,000 sellers and 200-odd merchants in the furniture and home segment. Pepperfry has overall raised Rs 1,300 crore after raising Rs 250 crore from SSGA in March 2018. Its other investors include Goldman Sachs, Norwest Venture Partners, Bertelsmann India Investments and Zodius Technology Fund.