TCC Concept acquires 95.18% in Pepperfry for Rs 660 crore

TCC Concept acquires 95.18 percent of Pepperfry for Rs 660 crore via share-swap

Pune-based TCC Concept Ltd has acquired a 95.18 percent stake in furniture marketplace Pepperfry for Rs 659.44 crore through a share-swap arrangement, the company told stock exchanges after its board meeting on October 14.

The transaction has been approved and is subject only to standard shareholder and regulatory clearances. Pepperfry will continue to serve customers and partners as usual through its omnichannel network as integration begins.

How is the deal structured and what’s the valuation?

TCC will issue 1,18,19,109 new shares at an issue price of Rs 557.94 a share to Pepperfry’s shareholders to complete the acquisition. The transaction values Pepperfry at about Rs 693 crore on a 100 percent basis.

Definitive agreements between the parties have been signed and following completion, Pepperfry will operate as a subsidiary of TCC while retaining its brand and leadership, the company said.

Why has TCC acquired Pepperfry?

TCC said the deal aligns with its strategy of building technology-enabled consumer platforms in high-engagement categories backed by strong brand recall.

“Pepperfry is an iconic digital-first brand that mirrors our ambition to build scaled, technology-enabled consumer platforms,” said Umesh Sahay, Managing Director, TCC Concept Ltd. “Our immediate priority is to expand assortment, aid global expansion, improve speed and enhance the omnichannel experience.”

What does this mean for Pepperfry’s leadership and operations?

Founder and CEO Ashish Shah will continue to lead the company under TCC’s ownership. “This joining hands and coming together with TCC marks an exciting next chapter for Pepperfry,” Shah said, adding TCC’s backing will help expand Pepperfry’s catalogue, fulfilment speed, and city reach.

TCC said the combination will leverage its strengths in product, data and platform engineering, supply-chain optimisation, and capital discipline to accelerate Pepperfry’s growth. The platform will maintain its brand identity and customer-first ethos, the company added.

What synergies will the acquisition create?

The companies expect to generate efficiencies in merchandising, sourcing, supply chain, and marketing while expanding Pepperfry’s reach across India. TCC said the move enhances its focus on e-commerce, digital infrastructure, and AI-powered solutions, creating a broader consumer internet play that spans multiple lifestyle categories.

Why the deal?

Moneycontrol reported in September 2024 that Pepperfry appointed an investment bank to explore strategic options, including a sale, as growth stalled and losses persisted.

At the time, the company’s revenue rose modestly from Rs 207 crore in FY19 to Rs 290 crore in FY23, while annual losses hovered around Rs 180–190 crore.

The acquisition provides a long-term home to the furniture marketplace under a stronger, publicly listed parent with deeper pockets.

What happens next?

With definitive agreements signed and the share issuance approved, the companies will now move to complete shareholder and regulatory formalities. Both sides said operations will continue uninterrupted as they begin integration and rollout plans for what Shah described as “Pepperfry 2.0” — a more global, technology-driven expansion of the brand.