Pepperfry, the popular online and offline furniture platform, has raised Rs 43.3 crore in a fresh funding round. The investment was led by GE Pension Trust, which contributed Rs 21.5 crore. Existing investors Norwest Venture Partners and Panthera Growth Partners also joined the round by investing Rs 8.52 crore and Rs 6.45 crore, respectively.
The company approved the issue of 5,59,463 compulsory convertible preference shares at Rs 775 each through private placement. This investment values the company at Rs 3,120 crore post-money. The funds will be used for business growth, expanding their presence, and other general company needs.
What is Pepperfry
Pepperfry is a popular online and offline furniture platform that was founded in 2012 by Ambareesh Murty and Ashish Shah. It operates as both an online and offline marketplace for furniture and home décor. The company has a strong offline presence with over 200 Studio Pepperfry outlets in more than 100 Indian cities. It also partners with big furniture brands like Godrej, Springfit, and Spacewood to give customers a wide range of options.
We remain committed to redefining the furniture-buying experience in India, and this investment gives us the fuel to accelerate our mission.
Ashish Shah, CEO, Pepperfry
In FY24, Pepperfry saw a 30.6% drop in revenue, going down to Rs 188.98 crore. However, the company managed to reduce its net loss by 37%, bringing it down to Rs 117.4 crore. This indicates improved cost management even during slower sales growth.
CEO Shares Vision
Ashish Shah, who became the CEO in 2023, commented on the new funding by saying, “We remain committed to redefining the furniture-buying experience in India, and this investment gives us the fuel to accelerate our mission.” His statement reflects Pepperfry’s focus on long-term expansion and enhanced customer service.
With this new funding and continued investor support, Pepperfry aims to strengthen its omnichannel strategy, which combines both digital and physical retail experiences. The brand is expected to use the money to upgrade showrooms, improve product offerings, and enhance customer service as it continues to grow across India.
Despite some financial challenges, the company’s new capital and strong investor backing show that Pepperfry is still seen as a key player in India’s growing furniture market.
