Pepperfry, the Mumbai based online furniture and home decor store has joined hands with single category e-tailers to increase their profit by end of this year.
“Discounts matter a lot when you are selling standardised products (like electronics), it is not as relevant in furniture. On most products listed on our marketplace we start with a 45 per cent gross margin, so even with our discounting, we don’t lose money on any transaction” CEO, Pepperfry, Ambareesh Murty was quoted by The Economic Times as saying.
Pepperfry, backed by Goldman Sachs has made a handful of investments which have improved customer experience with better organisation, merchandising technique, consulting and content.
At present it is making all preparations to deliver orders in two weeks. As per Murty, the company is aiming at selling goods worth Rs 1,000 crore by the end of March 2016. It will grow at least 150 per cent next year. Currently 10 per cent of the company’s business comes from its bespoke design business, 65-70 per cent from furniture with home and decor constituting the rest; as quoted by The Economic Times in saying.
Pepperfry, in July 2015, had raised a $100 million from Goldman Sachs, Zodius Technology Fund, their present investors Bertelsmann India Investments and Norwest Venture Partners. The company is in tough competition with private label retailer Urban Ladder, Flipkart and Snapdeal.