TCC Concept Limited , a technology-driven platform company, has announced a significant move in the e-commerce sector by acquiring a 95.18% stake in Pepperfry Limited, India's largest omnichannel furniture and home goods marketplace. The acquisition, valued at Rs 659.44 crore, will be executed through a share swap arrangement, marking a strategic expansion for TCC Concept into the digital marketplace space.

Key Details of the Acquisition

About Pepperfry

Founded in 2012 by Late Mr. Ambareesh Murty and Mr. Ashish Shah, Pepperfry has established itself as a leader in the online furniture and home goods market in India. The company boasts:

• A robust supply chain
• 150+ studios across 100+ cities
• Assisted Buying services
• Turnover of Rs 164.18 crore

Strategic Rationale

TCC Concept's acquisition of Pepperfry is aimed at:

1. Strengthening its presence in the e-commerce and digital marketplace space
2. Complementing its core focus on technology-driven platforms
3. Enhancing customer experience through integration of Pepperfry's established marketplace
4. Creating operational synergies
5. Unlocking new growth opportunities in the furniture and home goods sector

Employee Stock Option Plan

Alongside the acquisition, TCC Concept's board has approved an Employee Stock Option Plan (ESOP), which includes:

• Granting up to 35,00,000 options to eligible employees
• Options to vest after a minimum period of 1 year from the grant date
• Exercise price to be decided by the Nomination and Remuneration Committee

Regulatory Approvals and Timeline

The acquisition is subject to shareholder and regulatory approvals, including those from the stock exchange. TCC Concept expects to complete the transaction by December 15, pending all necessary approvals.

This strategic move by TCC Concept Limited represents a significant consolidation in the Indian e-commerce space, particularly in the furniture and home goods segment. The acquisition is expected to create synergies between TCC's technological expertise and Pepperfry's established market presence, potentially reshaping the competitive landscape in this rapidly growing sector.

TCC Concept Limited, a technology-focused company, has announced a strategic move to bolster its presence in the e-commerce sector. The company has executed a term sheet to acquire up to 100% shares of Pepperfry Limited, a prominent online furniture and home goods marketplace.

Acquisition Details

The proposed transaction, as disclosed by TCC Concept in its regulatory filing, is subject to several conditions:

• Completion of satisfactory due diligence of Pepperfry Limited
• Execution of definitive agreements
• Fulfillment of other applicable conditions

Strategic Rationale

This acquisition aligns with TCC Concept's vision of building scalable and technology-enabled consumer platforms. The company aims to achieve several strategic objectives through this deal:

• Strengthen TCC's presence in the e-commerce and digital marketplace space
• Complement its core focus on technology-driven platforms
• Enhance customer experience by integrating Pepperfry's established marketplace with TCC's innovation and digital expertise
• Create operational synergies
• Unlock new growth opportunities in the furniture and home goods sector

Impact on TCC Concept

The acquisition of Pepperfry is expected to have a significant impact on TCC Concept's business model:

1. E-commerce Expansion: By acquiring Pepperfry, TCC Concept will gain immediate access to a well-established online marketplace for furniture and home goods.
2. Technological Synergies: The integration of Pepperfry's platform with TCC's technological capabilities could lead to improved user experiences and operational efficiencies.
3. Market Position: This move is likely to strengthen TCC Concept's position in the competitive e-commerce landscape, particularly in the home and living segment.

Looking Ahead

While the deal is still in its early stages, it represents a significant step for TCC Concept in its journey to expand its digital footprint. The successful completion of this acquisition could potentially reshape the company's business model and market positioning.

As the due diligence process unfolds and definitive agreements are finalized, stakeholders will be keenly watching how this strategic move unfolds and its potential impact on both TCC Concept and the broader e-commerce sector in India.

TCC Concept Limited made this announcement in compliance with the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.