MUMBAI
:
Lighthouse Funds-backed gifting platform Ferns N Petals (FNP) is in early talks to raise up to $40 million from new investors and has appointed Ambit Capital to help with the fundraise, two people familiar with the matter said.
“The deal was soft launched about two weeks back and the talks are still in early stages,” one of the two people cited above said.
“The company is already seeing interest from new investors and the round is likely to give FNP a valuation boost,” the second person said, adding that this will likely be the company’s last private round before it plans for a public listing in the next 24-36 months.
If the deal materialises, the funds will be used to expand FNP’s footprint and strengthen product lines, the people added. FNP declined to comment, while queries sent to Ambit remained unanswered.
Lighthouse’s bet and growth path
The development comes over three years after Lighthouse Funds invested $27 million ( ₹200 crore) in the gifting platform at a valuation of about ₹2,400 crore in March 2022. At the time, the company highlighted that it would use the proceeds towards improving its systems and technology.
Founded in 1994 by Vikaas Gutgutia, Ferns N Petals began its journey from a single flower shop in Delhi. Over the years, the company expanded its offerings to over 40,000 products across various categories such as cakes, flowers, plants, chocolates, and personalized merchandise.
Broadly, India’s gifting market is expected to witness significant growth from $75.16 billion in 2024 to reach $92.32 billion over the next 5 years, according to various industry estimates. A bulk of this growth will be driven by the corporate gifting segment and the digital gift card market. Other streams like virtual gifting on Indian short form video platforms are also expected to pick up pace with more users willing to spend through such avenues, Redseer said in a report in 2023.
Meanwhile, FNP operates through a network of more than 400 franchised stores across India and also has on-ground operations in the UAE, Singapore and Qatar. It also has plans to enter Saudi Arabia, Malaysia, Indonesia, Philippines and the UK, the company had said.
The company also outlined plans to add 30 COCO (company-owned, company-operated) stores in the next 12 months in larger cities and some tier-2 cities. It also aims to establish an offline retail presence overseas in places like Doha and Dubai, the company told Financial Express in an interview last month. In FY26, it expects to be profitable.
In FY24, FNP’s operating revenue rose to ₹705 crore from ₹607.3 crore. Its losses narrowed to ₹24.26 crore from a loss of ₹109.5 crore in FY23.
The company has also been leveraging quick commerce as a new revenue driver and has doubled its quick commerce sales every quarter. The company counts Swiggy as a key partner for distribution and has adopted an omni-channel approach.
“While our own website remains the largest contributor, quick commerce has clearly emerged as the fastest-growing sales channel,” Avi Kumar, chief marketing officer at FNP, told Mint in September.
Giftables will create further synergies between the brands and open new avenues for consumers, he further added. FNP’s sales through quick-commerce platforms have been doubling each quarter, especially for cakes, flowers, and gift hampers, he said. Its other peers – Archie’s and IGP (Indian Gifts Portal) are also riding the quick commerce wave.
