Pepperfry Business Model: How does Pepperfry Make Money?

See, officially, Pepperfry was launched in 2012, but the actual idea of this brand/company came into existence back in 2011 by two friends, Ambareesh Murty and Ashish Shah, who then went on to make their dream of a big furniture brand that sells amazing furniture pieces in the country. And this is precisely where Pepperfry stands now as of 2025. Though it is not just the furniture business alone that makes them all their revenue and profit numbers, see, there is a lot that also goes on behind the scenes and works as different income streams within this business. So, if you’re here to simply know about the actual Pepperfry business model and how it makes money, then just keep on reading.

What Pepperfry Does and How It Works

What are the services that Pepperfry offers? It is comparable to a one-stop spot for furniture and home decoration shopping under the brands of Pepperfry and third-party sellers. And sure enough, years went by during which the firm upgraded its model to include:

• A marketplace where third-party sellers list their furniture and decor products.
• Direct sales through Pepperfry’s own brands.
• Physical showrooms, known as Pepperfry Studios, where customers can check out products in person.
• And a strong logistics arm, which takes care of delivery and installation, you know, especially for those heavy and bulky furniture items.

Essentially, the central concept of this company is to make available a large number of options for customers and, at the same time, offer services that generate more value for both them and the company. Consumers who are visually inclined may take advantage of the studios, while the entire logistics chain guarantees that the merchandise is both securely transported and correctly installed.

How Pepperfry Makes Money?

Let’s break down Pepperfry’s income sources in simple terms.

• Marketplace Commissions and Platform Fees: Merchants place their wares on the Pepperfry marketplace and are charged a certain percentage of the end amount as a commission. Pepperfry uses this commission as part of its income. Because there are lots of sellers on the platform, the business can count on this source of revenue as being safe.
• Direct Sales Through Pepperfry-Owned Brands: As well as being a marketplace for other sellers, Pepperfry has furniture offerings of its own through private-label or D2C brands. While direct sales are typically more profitable, the company has to handle the stock and logistics, too.
• Studios and Offline Business: Pepperfry runs both company-owned and franchise studios. In these stores, customers can check out and test the furniture prior to making a purchase. The proceeds from studios are directly injected into the company’s sales, while franchises generate income through fees. Furniture sales through studios, in particular, are the ones that are boosted for valuable pieces.
• Logistics and White-Glove Services: It is quite difficult to transport furniture to different locations throughout India. That is the reason why PepCart, their own delivery system, was started by Pepperfry from scratch. The company provides delivery, installation, and white-glove handling services to customers for a fee. In this way, the company is not only generating additional revenue but also giving the customer experience control to Pepperfry.
• Assembly, Installation, and Extended Services: A lot of consumers go for products that are pre-assembled, and they can be used immediately. By providing services such as installation, assembly, an extended warranty, and even interior design assistance, Pepperfry not only makes more money but also makes more money from single clients.
• Advertising, Partnerships and Miscellaneous Income: In addition, Pepperfry collaborates with other companies for advertising or licensing. Although in terms of product sales, this category is a minor source of revenue, it still makes a contribution to the total revenue.
• Finance and Payment Tie-ups: In order to provide easy payment options, Pepperfry has set up agreements with financing companies and paid service providers. Customers can avail of convenient EMI or “Buy Now, Pay Later” facilities, which sure are super famous nowadays. Such partnerships create a better flow of business and, on some occasions, lead to the payment of minor partner fees; however, the amount of direct revenue from this segment remains limited.

Recent Trends and What the Numbers Tell Us

If we consider recent performance, the GDV provides a clear indication of how the total business volume is large, while the revenue figure tells what the company keeps for itself. In FY22-23, the revenue of Pepperfry was about ₹290.4 crore, and it has gone down to roughly ₹189 crore in FY23-24.

Correct, the reported revenue declined; however, the company is going through a streamlining process and concentrating on the rise of profits. In general, investors tend to consider both GDV and revenue figures. By the looks of it, whatever Pepperfry is doing in this specific niche right now, well, they’re setting themselves up for more growth down the line.