IPO-bound Pepperfry cuts losses
Premium- 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
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Ahead 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.
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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.
