BackIPO-bound Pepperfry cuts losses
The InnoVen Capital-backed company's consolidated net loss stood at ₹105.65 crore for FY21, down by 37% against a net loss of ₹167.29 crore for 2019-20
PremiumAhead of its public listing, furniture marketplace Pepperfry narrowed its net losses by over one-third in 2020-21 (FY21) from a year earlier. The losses were reduced on the back of 37% reduction in its marketing expenses, which accounted for almost a fourth of the company’s total expenses.
The InnoVen Capital-backed company’s consolidated net loss stood at ₹105.65 crore for FY21, down by 37% against a net loss of ₹167.29 crore for FY20, the company said in a statement on Friday.
Helping cut down losses during the reporting period, its marketing expenses dipped to ₹70.61 crore as compared with ₹112.13 crore in FY20. The company also cut its logistics costs by one-third to ₹84.31 crore, from ₹125.52 crore a year earlier, improving its total expenditure down to ₹326.81 crore in FY21 from ₹412.76 crore in FY20.
However, in the pandemic-battered year, Pepperfry, owned and operated by Trendsutra Platform Services Pvt. Ltd, reported a 13% decline in revenue from operations on a consolidated basis.
Its consolidated operating revenue decreased to ₹201.50 crore for FY21 against ₹231.58 for FY20, which dragged its total income down to ₹220.99 crore from ₹245.01 crore.
The company also more than halved its underlying loss before interest, taxes, depreciation, and amortization to ₹36.70 in FY21 from ₹94.67 crore in FY20. The company claimed to be EBITDA (earnings before interest, taxes, depreciation, and amortization) profitable in the festival months of August and November 2020.
Pepperfry also claimed that 70% of its business was generated organically during FY21 and said 50% of the business each month was garnered from repeat customers. It said it re-architected its merchandise selection to deliver a wider range of furniture and furnishings, which helped it increase its average order value last year.
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