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IPO-bound Pepperfry picks up $10 Mn in debt


Hybrid furniture marketplace Pepperfry has picked up another tranche of $10 million from eight investors in the form of compulsory convertible debentures (CCDs). This will be the second debt infusion in the Mumbai-based company in 2021. 

In February, Venture debt firm InnoVen Capital had put Rs 35 crore in Pepperfry.

According to the company’s regulatory filings, Pepperfry has approved the issuance of 74348 CCD (Series A class) at a face value of Rs 10,000 each to raise around Rs 74 crore or close to $10 million.

Norwest Venture Partners, Broad Street Investments and Erste WV Guttersloh are the largest investors in this round with Rs 23.28 crore, Rs 18 crore and Rs 15 crore respectively. Panthera Growth Fund, General Electric Pension Trust and  Madhumala Ventures have also joined this tranche.

It’s worth noting that Madhumala is a part of Pidilite Industries limited which had invested in Pepperfry in May last year. Pepperfry was valued at around $462 million in that round, as per Fintrackr’s estimates.

The decade-old company founded by Ambareesh Murty and Ashish Shah works on a marketplace model in both offline and online formats. With over 11,000 products, Pepperfry connects buyers with brands including Godrej, Springfit and Spacewood.

As of June, Pepperfry had more than 70 offline studios across 40 cities.

According to a Mint report, Pepperfry is planning to file for an initial public offering (IPO) in the first half of 2022 and is likely to raise a pre-public round in the range of $50 to $100 million by the end of this year.

Shah also claimed that the company will turn unicorn ahead of its IPO.

While the company has not filed its annual financial statement for FY21, it posted a 26% increase in revenue to Rs 260.61 crore in FY20 and managed to cut losses by 33% to Rs 122.31 crore during the period ending March 2020.

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