When you are in business; you are answerable for every next step. The most important question that is generally asked or raised is that when is the company looking forward to Initial public offer (IPO). Initial Public offer is the moment where you step in the market with future prospects in order to get enough resources.
If you do not do this; the other question raises that may be the plans to diverse or expand are not on the cards. May be the company is not getting enough confidence to step into the markets. The questions are unending and they slowly become a threat to your survival.
Tuesday brought a similar situation for Pepperfry where the founder clearly stated that the IPO is definitely on cards but till next year. Let’s know more by getting inside the article.
MORE ABOUT PEPPERFRY
The company is an Indian online market for furniture & home décor. It was founded in the year 2011 by Ashish Shah & Ambareesh Murthy. It is headquartered in Mumbai. It is basically a subsidiary of Trendsutra Platform Services Private Limited.
The company has well established 4 warehouses in cities Bangalore, Jodhpur, Mumbai & Delhi. Proper ventureship has been made into Bosch, Siemens, Kajaria, Gyproc and others. The funding timeline is mentioned below:
|2013||$ 8 million (series B)|
|2015||$ 15 million (series C)|
|2015||$ 100 million (series D)|
|2016||$ 69 million (series E)|
More than 60 Lakh registered users
50 cities covered
More than 1.2 Lakh products
More than 40 experience centers
More 120 Lakh monthly visits
INSIGHTS INTO THE IPO NEWS
The business witnessed pandemic and was showing positive signals of being getting listed. The founder Ashish Shah mentioned in an interview that the IPO thing is being planned for a long time but the timing usually is not getting good. If the situation would have been better in the last year; the company would have surely hit the markets by now.
He added that “From the process standpoint, we began our IPO preparation six months ago. Last year, we did an IPO day at Pepperfry, most of our documentation is ready and we are moving fast as long as processes are concerned,”.
According to SEBI; the IPO has certain conditions to fulfil with respect to its net worth & profitability. The company is looking forward to get those fulfilled and then appear for the listing. In the months of lockdown also ; the company had a clear cut agenda to maintain its profitability with the help of supply chain pricing & efficient relation with merchants. This year had made them close to the target that is requisite for listing.
Getting into markets is possible only when the timings are in favour; you cannot just plan and enter. The markets are driven by volatility and therefore it is requisite to be ready whenever required. Pepperfry’s instance has made this clear that IPO is a difficult step and it happens according to its own timings.