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Online furniture marketplace Pepperfry has started rearranging its business structure while gearing up for its debut on the stock exchanges.

As a part of the restructure, the founders Ambareesh Murty and Ashish Shah have redomiciled Pepperfry from Cayman Islands to Mumbai, Times of India reported.

Earlier, the founders planned to list Pepperfry in the US and registered the startup in Cayman Islands as the earlier plan was to establish a primary listing in the US. However, as a foreign-registered company cannot do an Initial Public Offering (IPO) in India, the startup has changed its strategy.

Moreover, the company is onboarding independent directors as it is mandatory for unlisted public companies to reserve at least 33% of its directorships for independent directors, if its chairman is an independent director.

The Mumbai-based startup is seeking to raise as much as $300 Mn via sale of new stock and a secondary offering of shares. It is planning to file a draft IPO prospectus with Securities and Exchange Board of India (SEBI) this year.

Started in January 2012 by Ambareesh Murty and Ashish Shah, Pepperfry sells furniture and other home products including mattresses, dining and bar furniture, carpets, appliances, garden and outdoor, among others. On the other hand, it also has built an offline presence through a franchise model. 

In May, the startup converted into a public entity after its board passed a resolution. It had also been renamed as Pepperfry Limited after the conversion. 

Last November, Pepperfry raised around $40 Mn in a debt funding round from Norwest Venture, General Electric Pension Trust, along with others. It has raised around $245.3 Mn till date.

Pepperfry narrowed down its losses by 61.6% to INR 47.2 Cr in FY21 as compared to INR 122.8 Cr in FY20. However, its operating revenue also saw a decline of 14% to INR 203.4 Cr In FY21 from INR 236.3 Cr in FY20.