Gifting platform FNP aims to more than double its revenue to reach ₹2,400 crore by FY28 ahead of a planned IPO. The company is focusing on retail store expansion, quick commerce, and AI integration to improve margins after a period of overspending.
Ferns N Petals, known as FNP, has outlined a clear path toward a public market debut by 2028. The company is setting its sights on an annual revenue target between ₹2,200 crore and ₹2,400 crore. This goal represents a significant acceleration from its reported FY26 revenue of ₹1,085 crore. To reach this scale, the management plans to expand its physical retail network to approximately 350 stores over the next two years.
Strategic Shift Toward Profitability
The move toward an IPO follows a phase of restructuring. After receiving institutional funding in FY23, the company initially pursued an aggressive growth strategy that led to higher spending on technology and marketing. According to CEO Pawan Gadia, this phase resulted in pressure on the company's profit margins. In response, FNP has shifted its focus toward financial discipline and operational efficiency. The company has moved to improve its supply chain by sourcing flowers directly from growers and investing in central kitchens to manage cake production costs more effectively.
Scaling Through Quick Commerce
Quick commerce has emerged as a major growth channel for the business. FNP currently processes approximately 10,000 orders daily through various quick-commerce and food-delivery platforms. The company expects this segment to contribute ₹125 crore in revenue this year, nearly doubling the ₹65 crore generated in FY26. While the company previously had concerns about the impact of these platforms on its profit margins, it has now integrated them as a necessary part of its customer reach strategy.
Global Presence and Technology
International operations currently account for nearly half of the company's total revenue, with the UAE being a primary market contributing ₹500 crore. FNP is also looking at potential acquisitions and local partnerships to enter new countries. On the technology front, the company is using AI for demand forecasting and procurement. One notable efficiency gain reported by the management is a one-third reduction in the customer support workforce, which the company attributes to the successful deployment of AI tools.
Future Monitorables
As FNP prepares for its 2028 listing, investors and stakeholders will watch how the company balances its ambitious expansion plans with the need for stable margins. The key monitorables moving forward will include the successful scaling of its retail footprint, the ability to maintain profitability within the low-margin quick-commerce segment, and the execution of its international acquisition strategy. The company’s success in maintaining consistent quarterly performance and governance standards will be central to its IPO readiness.