Lighthouse Funds-backed Ferns N Petals plans fresh $40 million raise; appoints banker

“The deal was soft-launched about two weeks ago and talks are still in the early stages,” said one of the two people cited above.

“The company is already attracting interest from new investors and this round will likely give FNP a valuation boost,” the second person said, adding that this will likely be the company’s last private round before it plans to go public in the next 24-36 months.

If the deal goes through, the funds will be used to expand FNP’s footprint and strengthen its product lines, the sources added. FNP and Ambit did not respond MintEmails from named asking for comment.

Lighthouse’s bet and growth path

This development comes three years after Lighthouse Funds invested $27 million ( ₹With a valuation of around ₹200 crore on the gifting platform ₹2,400 crore in March 2022. At that time, the company underlined that it would use the revenue generated to develop its systems and technology.

Founded in 1994 by Vikaas Gutgutia, Ferns N Petals started its journey from a single flower shop in Delhi. Over the years, the company has expanded its range to more than 40,000 products in various categories such as cakes, flowers, plants, chocolates and personalized products.

Overall, India’s gifting market is expected to reach $92.32 billion in the next 5 years from $75.16 billion in 2024, according to various industry estimates. Most of this growth will come from the corporate gift segment and the digital gift card market. Other flows such as virtual gifting on short-form video platforms in India are also expected to gain momentum with more users willing to spend through such means, Redseer said in a 2023 report.

Meanwhile, FNP operates through a network of over 400 franchised stores across India and also has onshore operations in the UAE, Singapore and Qatar. The company also said it plans to enter Saudi Arabia, Malaysia, Indonesia, the Philippines and the United Kingdom.

The company also outlined plans to add 30 COCO (company-owned, company-operated) stores in major cities and some tier-2 cities over the next 12 months. The company said it also aims to establish an offline retail presence abroad in places such as Doha and Dubai. Financial Express he said in an interview last month. It expects to be profitable in FY26.

FNP’s operating income in FY24 ₹705 crore ₹607.3 crore. Losses narrowed ₹24.26 crore from loss ₹109.5 crore in FY23.

The company is also leveraging flash commerce as a new source of revenue, doubling flash commerce sales every quarter. The company sees Swiggy as an important partner in distribution and adopts an omni-channel approach.

“While our own website continues to be the largest contributor, flash commerce has clearly emerged as the fastest growing sales channel,” said Avi Kumar, FNP’s marketing director. Mint In September.

He added that gifts will create more synergy between brands and open new avenues for consumers. He said FNP’s sales through flash trading platforms were doubling every quarter, especially in cakes, flowers and gift baskets. Its other peers, Archie’s and IGP (Indian Gifts Portal), are also riding the wave of booming business.