Furniture retailer Pepperfry Wednesday said it has narrowed its losses to Rs 169.26 crore for FY18 driven by higher efficiencies and reduction in overhead costs.
TrendSutra Group of Companies, which operates under the Pepperfry brand, had posted losses of Rs 248.50 crore in FY2017, a statement said.
“Over the last few years, we focused on strong unit economics and building a business that truly benefits from economies of scale,” Pepperfry founder and CEO Ambareesh Murty said.
This is the second consecutive year that the company has reduced its losses. Revenue in FY18 grew 20 percent to Rs 308.46 crore from Rs 257.96 crore in the previous fiscal, it added.
The company has derived scale efficiencies through supply chain automation, high vehicle utilisation, improved delivery success rates and staff productivity.
Further, Pepperfry achieved 17 percent year-on-year reduction in overheads through tight budget controls, the statement noted.
Pepperfry competes against Urban Ladder as well as large e-tailers like Flipkart and Amazon that are ramping up selection in the furniture category.
The company has expanded house brands into categories such as mattresses, enhanced its modular furniture offering and introduced services like Furniture Exchange, the statement said.
The furniture retailer has also doubled the footprint of its Pepperfry Studio, reaching 28 Studios across four existing and eight new cities (FY17-18), it added.
“Studios augmented Pepperfry’s consumer loyalty by expanding the repeat customer base and driving higher order values,” it added.