Pepperfry Strives for IPO Next Year as it Nears Break-Even


Pepperfry Strives for IPO Next Year as it Nears Break-Even
Online furniture store, Pepperfry reveals its transition of gaining profitability and its plan to file for IPO by next year. The brand is joining a slew of Indian startups that are intending to go public in the following year.
Ambareesh Murty, Co-Founder, and Chief Executive Officer said in an interview, "We set a goal of profitability for the early part of next year. In August, we almost broke even. We are gunning to file for an IPO in 12-18 months. For an IPO, a track record of at least 6-9 months of profitability is important to show the business is capable of making money. Over 6-12 months, we will focus on not only profitability but will also use the opportunity to grow. There is no scope for complacency, and we need to execute the way we have all this while."
Pepperfry's IPO plans come at a time when almost all the sectors including furniture retail have been undergoing economic disruption caused due to pandemic lockdown. However, Pepperfry is not opting for IPO solely, but a set of startups that include Zomato, MobiKwik, Delhivery, PolicyBazaar among others are also indulging in filing IPO by early next year amid the distress caused by COVID-19. 
Ambareesh further adds, “If one was to list in the US, then an Indian business would be perceived as an emerging market business; what would matter is its rate of growth and profitability. However, if listing in India, you would be looked at as a consumer brand that gets a valuation premium in the equity markets. Depending on the path a startup has adopted, be it rapid growth or profitability, will decide the market you want to list in. If I am on a balancing path, of growth and profitability, (listing in) India makes a lot more sense for me." 
As per to data from RedSeer Consulting, the country's online furniture market has developed at an annual average pace of nearly 80-85 percent to attain $700 million in 2019-20. Although online has less than three percent share in the overall furniture market secured at $17 billion.