According to Your Story, a few years ago, buying furniture online would have been unthinkable. But in 2012, two Mumbai-based professionals – Ashish Shah and Ambareesh Murty – started up in the sector, and fought their offline competition with funding from Zodius Capital, Bertelsmann, and Norwest Ventures.
Six years later, this venture – Pepperfry – has become the undeniable market leader in the online furniture and home décor sector. In fact, FY2017-18 has been a landmark year for the company, with multiple innovative initiatives and more funding in its kitty, stores near me.
In FY2017, Pepperfry grew 26 percent in revenues while its losses declined by 17 percent compared to the previous year. (Pepperfry’s rival Urban Ladder had 22 percent increase in revenues during the same period.)
Today, Pepperfry claims to have a 60 percent market share in the online home and furniture segment by working directly with 10,000 plus merchant partners and a catalog of 1.2 lakh products. On its leadership team too, there have been significant additions: Pepperfry hired Abhimanyu Lal as its Chief Product Officer (CPO) and elevated Hussain Kesury, its former Vice President and Business Head – Furniture, to Chief Category Officer (CCO).
YourStory takes a look at how this fiscal has played out for Pepperfry.
India’s furniture sector is 90 percent unorganized. Of the organized, only one percent is online. According to a Redseer Consulting report, the home furniture industry in India was worth $25 billion in 2016, with the online furniture industry alone making up $250 million. By 2020, the furniture industry is expected to grow to $35 billion, and the online section will be worth $700 million.
One of the main aspects of the online furniture business, which Pepperfry got right at the beginning itself, is logistics. Instead of the routine of outsourcing it from third-party logistics players, Pepperfry built a hub and spoke large item distribution model and now has more than 400 trucks. It claims to have the capability to deliver more than 100,000 large items per month.