TCC Concept, a listed small cap firm on Indian public markets, has signed a binding agreement to acquire online furniture retailer Pepperfry, a well-known Indian home goods startup. In a filing submitted to the stock exchange on September 19, the company said it would acquire up to 100% ownership in Pepperfry. However, the value of the transaction has not been disclosed. The acquisition will go through only after due diligence, regulatory approvals, and final legal documentation are completed.
The deal becomes noteworthy since Pepperfry is a much larger company in terms of capital raised and valuation compared with TCC Concept, which is a small-cap company with a market capitalisation of $220 million. Pepperfry itself has raised over $300 million from notable investors like Silicon Valley’s Norwest Venture Partners, General Electric Trust, and Bertelsmann, and was last valued at over $341 million.
Pepperfry (founded in 2012) has built a hybrid retail model with a strong online presence as well as physical studios in multiple Indian cities. Over the past three years, the company has focused on expanding its offline footprint, growing from 140 studios in FY22 to more than 200 by FY24, with nearly half of its sales now reportedly coming from offline channels.
Despite such performance, the company is still not free from challenges. It has also witnessed major leadership and strategic changes. Following the sudden passing of co-founder Ambareesh Murty in 2023, Ashish Shah (the co-founder and CFO) was elevated to CEO, while Madhusudan Bihani became CFO in late 2024. The company has pivoted aggressively towards omnichannel operations, higher-margin in-house brands, and deeper penetration into Tier 2 and Tier 3 cities. However, competition from players like Urban Ladder and Wakefit, along with slowing growth, led Pepperfry to postpone its planned initial public offering (IPO). In FY24, the company’s operating revenue declined sharply by 31% to about ₹189 crore, though net losses narrowed to around ₹117 crore due to cost controls and reduced advertising expenditure.
At the same time, for TCC Concept, which reported operating revenues of about ₹83 crore and a profit after tax of around ₹42 crore in FY25, the acquisition represents a diversification into e-commerce from its core real estate services business. Its main unit, Brantford India, operates as an aggregator and broker in commercial real estate, and the company has gradually expanded into leasing and data centre operations. By acquiring Pepperfry, TCC seems to be trying to combine its technology and operational expertise with Pepperfry’s established brand in the home and furniture sector, improve customer experience, and create operational synergies. Importantly, the effect is already starting to show, as shares of TCC Concept surged to their upper circuit limit of 5% following the revelation.
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