Pune-based TCC Concept said its board has approved the acquisition of Pepperfry, an omnichannel furniture and home goods platform, in a share swap deal, according to exchange filings on Tuesday.
The company had earlier, on September 19, announced signing a term sheet to acquire up to the entire shareholding of Pepperfry, subject to due diligence, execution of definitive agreements, and other conditions.
At the time, TCC, a small-cap real estate company, said the proposed deal was aimed at strengthening its presence in the ecommerce and digital marketplace space, while complementing its focus on technology-driven consumer platforms.
TCC said the acquisition of Pepperfry aligns with its strategy to build scaled digital marketplaces with strong brand recall.
“Pepperfry is an iconic digital-first brand that mirrors our ambition to build scaled, technology-enabled consumer platforms. This acquisition aligns with TCC’s roadmap to deepen our presence in high-engagement categories and unlock operational synergies across product development, data and supply chain," said Umesh Sahay, Managing Director, TCC Concept, in a filing.
He added, "Our immediate priority is to invest to expand assortment, aid global expansion, improve speed and enhance the omnichannel experience. We are excited to partner with the founder, Ashish Shah and back him to continue building the platform for Furniture and Home Goods for the World.”
Pepperfry CEO Ashish Shah said the partnership will allow the company to expand its catalogue, improve fulfilment, and enhance its omnichannel experience while continuing to operate under its existing brand. During the process, Pepperfry is expected to remain operational.
The transaction follows a period of slow growth for Pepperfry, which reported a decline in operating revenue in FY24 as it focused on reducing losses through cost controls. Earlier in June, the company raised funding from General Electric Pension Trust and existing investors to support its operations and growth plans.
Coortus Advisors acted as exclusive deal and tax advisor, while Khaitan & Co served as transaction counsel for TCC Concept.
Edited by Suman Singh
Original Article
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