TCC’s Bet on Pepperfry, Ultrahuman’s Comeback, and Rentomojo’s IPO Dreams

In India’s startup ecosystem, acquisitions often split into two buckets: bold strategic bets or quiet distress exits. TCC Concept’s move to acquire Pepperfry, once the poster child of online furniture, sits somewhere in between.

Pepperfry has been struggling for years. FY24 revenues fell by ~30% to ₹189 crore, marking the second straight year of decline, though losses narrowed by ~37% to ₹117 crore thanks to brutal cost cuts across ads, logistics, and headcount. The unit economics remained poor, with the company spending ₹1.73 to earn ₹1 and an EBITDA margin of −21% . Its IPO dreams had already been shelved, and in mid-2025, it raised just ₹43 crore in bridge capital from existing investors - a clear signal that growth capital was drying up.

For TCC, a profitable, B2B-heavy real estate services company, this is opportunistic timing. With steady cash flows from aggregation, leasing, and data-center businesses, TCC can afford to buy a struggling consumer internet platform without jeopardizing its balance sheet. On paper, the synergies look compelling. Pepperfry’s 200+ studios give TCC instant national omnichannel presence. Its Pepcart logistics network solves the hardest problem in furniture - bulky last-mile delivery and assembly. The supplier marketplace and private label brands provide cross-sell opportunities into TCC’s developer and enterprise pipelines. And bundling furniture into leasing and fit-out contracts could become a margin lever inside TCC’s Brantford and ALtRr platforms.

But let’s be clear: Pepperfry isn’t a growth rocket, it’s a turnaround project. The broader furniture e-commerce category has seen more flameouts than wins. Urban Ladder raised ₹700 crore only to sell to Reliance Retail in 2020 for ₹182 crore - a fire-sale outcome. Furlenco, once a high-flying rental brand, faced insolvency proceedings in 2024. Globally, Made.com collapsed into administration, while Home24 was taken private. The lesson? Furniture is capital intensive, with low repeats and brutal logistics costs.

Pepperfry does have global playbooks to learn from. Wayfair in the US returned to profitability in 2025 by tuning logistics and offering premium delivery tiers. Australia’s Temple & Webster pushed private labels to 30%+ of sales and built a lean, profitable model. Europe’s Westwing lifted its own collections to 55% of GMV and now targets 6-8% EBITDA margins. Pepperfry’s path forward likely lies in some combination of these strategies: expanding private labels, using its studios as conversion hubs, and productizing Pepcart logistics into “white-glove” delivery.

So is this a strategic coup or a distress sale? The truth lies in the missing number - the deal value. Pepperfry’s last publicly reported valuation was $375 million in mid-2023, but given its shrinking revenues and bridge financing, the final price is likely far lower. If it prints near 1x FY24 revenue (~₹189 crore), it will mirror Urban Ladder’s distressed multiple. If TCC negotiated even lower with performance-based earn-outs, it could prove a bargain buy. Either way, this is clearly a buyer’s market.

For Pepperfry, this deal was about survival. For TCC, it’s about optionality: an entry into consumer internet with tangible synergies to its real estate stack. Execution, however, will decide whether this becomes a success story or another cautionary tale in India’s online furniture graveyard.

Let’s go through what else is happening in Indian startup world - Grab your simmering cup of StartupChai.in and unwind with our hand-brewed memes.

“Re Sultan De Dhobi Pachad”: Ultrahuman Rings In INR 73 Cr Profit On 5X Revenue Surge

Ultrahuman has staged a dramatic turnaround, moving from a ₹37.7 Cr loss last year to a ₹71.5 Cr profit in FY25.

The smart ring maker’s revenue surged nearly 5X to ₹564.7 Cr, driven by strong demand for its wearable tech. A ₹32.7 Cr tax credit gain further added to its momentum, cementing its rise in the fitness-tech space.

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“Maidan-E-Jung Ki Taiyyari”: Accel-Backed Rentomojo Kicks Off IPO Preparations

Rentomojo is gearing up for the big leagues, kickstarting its IPO journey with IIFL and Motilal Oswal as lead managers.

The Accel-backed startup saw its net profit jump 82% to ₹40 Cr in FY25, signaling solid growth momentum. With about ₹400 Cr already raised from marquee investors, it now has its eyes set on a public debut by FY27.

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“Janmo Ke Saathi”: EaseMyTrip To Increase Stake In Eco Hotels & Resorts To Over 20%

EaseMyTrip is doubling down on green hospitality, upping its stake in Eco Hotels and Resorts to over 20% through a ₹15.2 Cr rights issue.

The investment comes as the eco-focused hotel operator, though still early stage, shows steady growth with rising turnover in recent years.

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“Sabke Liye Rapchik Offer Hai”: Cashfree Celebrates 10 Years With A Bold Bet On Startup-Friendly Payment Rates

Cashfree is marking its 10th anniversary with a bold pitch to startups, slashing its payment gateway fee to 1.6% for new D2C brands and MSMEs signing up before December 31, 2025.

From tackling integration headaches to building AI-driven tools, the fintech has steadily grown into a full-stack payments platform. With plans to expand deeper into AI and regtech, it now wants to power cross-border commerce.

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1. OnFinance AI has bagged $4.2 Mn in a pre-Series A round led by Peak XV’s Surge, with backing from marquee investors including Groww Founders’ Fund and MarsShot VC. The BFSI-focused startup will channel the funds into scaling contracts in India, expanding to the US and MENA.
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2. Frontier Tech Capital, co-founded by ex-Citi exec Brijesh Pande, KaHa’s Pawan Gandhi, and Plainview CEO Razat Gaurav, is raising a $150 Mn maiden fund. The PE firm has already secured nearly half the corpus and will back 10–15 growth-stage Southeast Asian startups.
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3. HR-tech startup All Things People (ATP) has raised ₹7 Cr in seed funding from a syndicate of global industry leaders and seasoned executives. The fresh capital will fuel its first product rollout, tech infrastructure, and market expansion plans.
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4. Carbon Masters India has raised fresh equity funding from SEEAA, Sangam Ventures, and IAN Group, with participation from industry leaders like Sriram Sankaran and Muthu Murugappan. The funds will be used to scale its Carbonlites CBG and organic fertiliser portfolio.
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