Mumbai-based omnichannel furniture marketplace Pepperfry has raised ₹43.3 crore (approximately $5.1 million) in a new funding round led by its existing investors. This infusion of capital comes as the company continues its efforts to expand operations and enhance profitability.
Key Highlights:
- Investor Participation: The funding round saw contributions from General Electric Pension Trust (₹21.5 crore), Norwest Venture Partners (₹8.5 crore), Panthera Growth Partners (₹6.4 crore), along with other existing stakeholders.
- Funding Mechanism: Pepperfry’s board approved the issuance of approximately 5.6 lakh compulsorily convertible preference shares at an issue price of ₹775 each to raise the funds.
- Previous Funding Rounds: In September 2023, Pepperfry raised $23 million from the same set of investors. Earlier, in 2021, the company secured $45 million in debt funding as part of its preparations for a public listing.
- IPO Plans: The company converted into a public entity in 2022 with an initial target of raising $250–300 million through an IPO. However, the listing was postponed last year after discussions with investment bankers, with co-founder Ashish Shah citing a focus on growth and profitability.
- Financial Performance: For the fiscal year 2023-24, Pepperfry’s operating revenue declined by 30.6% year-on-year to ₹188.9 crore, while net losses narrowed by 37.4% to ₹117.4 crore.
- Utilization of Funds: The latest capital infusion is expected to support growth initiatives, geographic expansion, and general corporate purposes.
- Business Model: Pepperfry operates a marketplace model, offering over 10,000 furniture and home décor products online and through more than 200 experience studios across 100 cities. The company earns a majority of its revenue through commissions from third-party product sales and has recently expanded its portfolio by onboarding multiple direct-to-consumer home décor brands.
