Pepperfry Secures ₹43.3 Cr from Existing Investors to Drive Growth

Omnichannel furniture marketplace Pepperfry has raised ₹43.3 crore (approx. $5.1 million) in a fresh funding round from existing backers including General Electric Pension Trust, Norwest Venture Partners, Panthera Growth Partners, Goldman Sachs, and the Growth Equity Opportunity Fund, according to filings accessed by Entrackr.

The funds have been raised by the firm by issuing around 5.6 lakh compulsorily convertible preference shares at ₹775 per share.

This is the latest Pepperfry raise after September 2023 when it had raised $23 million of funds from the same set of investors. It had also raised $45 million of debt in 2021 as part of its scale-up and IPO-readiness plan.

Pepperfry was established in 2012. It was listed as a public company in 2022 to mobilize $250–300 million by issuing an IPO. The listing was, however, delayed in 2023 following talks with investment bankers. Its co-founder Ashish Shah, had then indicated that the company was more interested in profitability and growth and not listing at a rapid rate.

Financially, Pepperfry announced its 30.6% decline in operating revenue to ₹188.9 crore during FY24. The company also reduced its net loss to 37.4% at ₹117.4 crore. The new capital will be used to fuel the company’s growth strategy, geographic expansion, and overall operations.

Pepperfry boasts a marketplace model selling over 10,000 furniture and home furnishings products online and offline through its 200+ experience studios in 100 cities. Pepperfry makes massive revenues by levying third-party sales commissions and has now diversified significantly its product basket by trading with direct-to-consumer (D2C) home decor brands.