The acquisition of Pepperfry by realty services firm TCC Concept has cast a spotlight on the ongoing struggles of India's online furniture sector. Industry insiders say the market faces structural issues, including commoditised designs, supply-chain inefficiencies, and a heavy dependence on offline sales, which have left only a handful of players thriving.
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Pepperfry, once a leading online furniture retailer, has reported declining revenue for two consecutive years. In FY24, its operating revenue fell 30% to ₹189 crore, reflecting the broader difficulties in sustaining growth amid rising competition and changing consumer preferences.
TCC Concept recently acquired a 100% stake in Pepperfry for an undisclosed sum. The move aims to expand TCC's e-commerce and digital marketplace presence beyond its traditional real estate and leasing services. While the deal value was not officially disclosed, sources suggest it is significantly lower than Pepperfry's $352 million valuation in July 2023.
In a statement, TCC Concept said the acquisition aligns with its vision of building scalable, technology-enabled consumer platforms. Analysts believe the deal underlines the sector's current fragility, where even established online players struggle to maintain revenue growth without strong differentiation, operational efficiency, and offline sales support.
Industry observers say Pepperfry's sale, combined with its shrinking revenue and deferred IPO plans, highlights the systemic challenges facing online furniture retail in India, and signals that only firms with robust infrastructure, distinctive offerings, and omnichannel strategies are likely to survive.
Source: www.livemint.com
