Online furniture retailer Pepperfry expects to be EBITDA-positive over the next 18 months. The company is also actively exploring an overseas foray.
According to Ashish Shah, Founder and COO, though Pepperfry does not follow an capex-heavy model, most earnings are reinvested in the business.
For the company to be EBITDA-positive, it is looking at a gross merchandise value of $500 million (₹3,500 crore). The retailer has been able to narrow down losses to a little over ₹169 crore, a reduction of 32 per cent, on a consolidated basis in 2017-18. Pepperfry’s consolidated revenues stood at about ₹309 crore last fiscal. “We have been able to establish both our online and omni-channel presence. Turning EBITDA-positive (profit before tax) will be our priority over the next 18 months or so,” Shah told
Plans to launch overseas
The company is also eyeing an entry into markets such as Singapore, Indonesia and Australia.
According to Shah, Pepperfry’s business model can be scaled up even in markets that are dominated by major brands. “Over the next three- to six-month period, we may come up with a concrete overseas launch plan,” he said.
Apart from selling other brands, Pepperfry also has as many as nine house brands (private labels). Nearly 50 per cent of its revenues come from these.Pepperfry is also ramping up the scope of its private labels in allied categories such as decor. “Expansion into allied categories will help reduce cost of customer acquisition. People buy a sofa once in five years, but items like cushion and cushion covers are something that are purchased once or twice a year,” said Shah.