The home and furniture products marketplace expects its house brands to drive business
Pepperfry has plans to expand its house brands portfolio and retail network by doubling its number of offline studios from 32 to over 70 by March 2019, reported The Hindu Business Line.
This is part of the company’s goal of breaking even by 2020, when it hopes to be a Rs 6,500 crore company with 50 percent of this business to be generated with its house brands.
Over the last few years, Pepperfry has launched several house brands, including Mintwud and Woodsworth, which have contributed to nearly half of its total business.
Chief category officer Hussaine Kesury said since its beginning nearly seven years ago, Pepperfry has grown and developed its catalogue to over 1.2 lakh products, for both online and offline businesses.
On specialised offerings under Mintwud, Kesury pointed out an offer to furnish a single BHK apartment for about Rs 50,000, which would work out to about Rs 2,500 per month if paid over two years.
Kesury said this offline expansion would establish Pepperfry’s name in the Indian furniture market that is worth Rs 1.5 lakh crore, of which the overall online market makes up barely two percent. He added that the expansion would be led by franchise studios.
Pepperfry recently raised Rs 250 crore from State Street Global Advisors to help fund its offline expansion, invest in AR/VR technology and get prepared to launch its IPO.All this goes towards realising the company’s ultimate hopes of turning profitable. Pepperfry initially predicted a gross merchandise value of Rs 2,000 crore in 2019 but has now raised its expectations to Rs 6,500 crore by 2020.