Omnichannel furniture brand Pepperfry is raising ₹43.3 crore (approximately $5.1 million) from existing investors such as General Electric Pension Fund, Norwest Venture Partners, Goldman Sachs, Panthera Growth Partners, and others.
This funding round follows the $23 million raised in September 2023 from the same group of investors.
According to regulatory filings accessed from the Registrar of Companies (RoC), Pepperfry’s board has approved the issuance of 559,463 compulsory convertible preference shares at an issue price of ₹775 each to raise the stated amount.
General Electric will lead this round with ₹21.5 crore ($2.5 million), while Norwest Venture Partners and Panthera Growth Partners will invest ₹8.52 crore and ₹6.45 crore, respectively, to increase their stakes. Goldman Sachs, Erste WV Gutersloh GmbH, and Growth Equity Opportunity Fund Cayman Holdings Ltd. will contribute the remaining funds.
The company plans to use the proceeds for growth, expansion, and general corporate purposes.
Post-allotment, Pepperfry’s valuation stands at ₹3,120 crore (around $367 million).
Operating on a marketplace model across both online and offline channels, Pepperfry offers a catalog of over 10,000 products and partners with leading brands like Godrej, Springfit, and Spacewood. The company claims to have more than 200 retail studios across over 100 cities.
The company has raised over $270 million to date from investors including Norwest Venture Partners, General Electric, Broad Street Investment, and Pidilite.
For the fiscal year ending March 2024, Pepperfry’s operating revenue declined by 30% to ₹189 crore, while it narrowed losses by over 37% to ₹117.5 crore.
Pepperfry competes with other well-funded furniture brands such as Reliance-acquired Urban Ladder, which has raised over $100 million, and Wooden Street, which secured $77 million in funding.
Pepperfry’s latest funding round reinforces investor confidence in its growth potential despite recent revenue challenges. With a strong marketplace model, expanding retail presence, and a solid backing from prominent investors, the company is well-positioned to continue scaling and competing effectively in India’s competitive furniture market.
