TCC Concept Limited has announced an expansion of its previously reported acquisition of Pepperfry Limited, India's largest omnichannel furniture and home goods e-commerce marketplace. The company's board has approved an increase in the stake acquisition from the initially planned 95.18% to 98.98% on a fully-diluted basis.

Acquisition Details

The revised deal involves TCC Concept acquiring:

• 3,50,32,475 equity shares (98.90% of total equity shares)
• 30,13,917 Compulsorily Convertible Preference Shares (CCPS) (100% of CCPS)

This acquisition represents a 98.98% stake in Pepperfry on a fully-diluted basis, for a total consideration of Rs 661.47 crore.

Share Swap Agreement

To facilitate this acquisition, TCC Concept will issue 1,18,55,560 equity shares to Pepperfry's shareholders through a preferential allotment. The shares will be issued at a price of Rs 557.94 per share, including a premium of Rs 547.94 per share.

Strategic Rationale

The acquisition aims to strengthen TCC Concept's presence in the e-commerce and digital marketplace space. By integrating Pepperfry's established furniture and home goods marketplace with TCC's technology expertise, the company plans to:

• Enhance customer experience
• Create operational synergies
• Unlock new growth opportunities

This move aligns with TCC Concept's vision of building scalable and technology-enabled consumer platforms.

About Pepperfry

Founded in 2011, Pepperfry has grown to become a significant player in India's online furniture and home decor market. Key highlights include:

• 150+ studios across 100+ cities
• Robust supply chain and Assisted Buying services

Regulatory Approvals and Timeline

The acquisition requires approval from TCC Concept's shareholders and the stock exchange, in accordance with the Companies Act, 2013 and SEBI regulations. The company expects to complete the acquisition subject to receiving all necessary approvals.

Impact on Shareholding

Post-acquisition, the promoter shareholding in TCC Concept is expected to decrease from 60.87% to 45.69%, while public shareholding will increase from 39.13% to 54.31%.

This strategic move by TCC Concept Limited marks a significant step in consolidating its position in the rapidly growing e-commerce sector, particularly in the furniture and home goods segment.

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.