Pepperfry is looking to expand its offline studio presence even as it charts a strategy to cut costs while spreading its wings.
Pepperfry is looking to expand its offline studio presence even as it charts a strategy to cut costs while spreading its wings. The Goldman Sachs and Norwest Venture Partners-backed firm has partnered with Franchise India to expand its offline studios through a franchise model this year.
The Mumbai based firm currently has 18 studios and is looking to expand to 46 studios in 15 cities by the end of FY18 through the franchise model. While the franchisees will own and operate the studios, Pepperfry will train the staff and ensure the order completion from the booking stage on wards. Additionally, the franchisee studios will allow customers to book and pay for an order from the studio a feature that is not available in the company-owned studios at present. The franchise studios will operate on a commission-based revenue model with margins spanning 8-13% per order.
Pepperfry clocked a 4x rise in revenue growth at Rs 98 crore year on year in FY16, even as total expenses more than doubled to Rs 253 crore as per documents filed with the registrar of companies and sourced from Tofler.
Area required: 1800 to 2000 sq ft
Franchise fee: 10 Lacs
Total Investment: 65 to 70 Lacs
pepperfry franchise opportunities are available in Pan India.