Exclusive: Pepperfry to raise $18 Mn funding in down round

Omnichannel furniture brand Pepperfry is raising Rs 158.4 crore (approximately $17.6 million) in a funding round led by Morde Foods and SageOne Investments, with participation from Newage Global Ventures, F3 Advisors, and 50 other investors, including angel investors such as Indian cricketer Shreyas Iyer.

This funding follows its $5.1 million round raised in June 2025 from existing investors, including General Electric Pension Fund, Norwest Venture Partners, Goldman Sachs, and Panthera Growth Partners.

The board of Pepperfry passed a resolution in January last month to approve the issue of 40,51,174 equity shares at an issue price of Rs 391 each to raise the aforementioned sum, according to its regulatory filings accessed from the Registrar of Companies (RoC).

Morde Foods will lead the funding with Rs 25 crore ($2.77 million), followed by SageOne Investments and Newage Global Ventures, which will invest Rs 20 crore and Rs 14.8 crore, respectively. Angel investors Sidharth Iyer and Vikas Arora will infuse Rs 15 crore and Rs 8.25 crore, respectively. The remaining amount will be contributed by 49 other investors, including Indian cricketer Shreyas Iyer.

Notably, according to the filing, the company has already received Rs 105 crore ($11.7 million) of the total funding, with the balance expected shortly.

The funding will be used to expand business operations, support subsidiaries and group entities, meet working capital needs, and for general corporate purposes, the filing added.

As per Entrackr estimates, Pepperfry’s valuation is expected to fall by 44% to Rs 1,661 crore ($185 million) post-allotment, down from Rs 2,979 crore ($330 million) in its previous $5.1 million round in June last year.

Founded in 2011, Pepperfry operates on a marketplace model across both online and offline channels. With a catalog of over 10,000 products, it connects customers to leading brands such as Godrej, Springfit, and Spacewood. The company reports a retail presence of more than 200 studios across 100+ cities.

The Mumbai-based company has raised over $275 million to date from investors including Norwest Venture Partners, General Electric, Broad Street Investment, Pidilite and others.

Following a 30% decline in operating revenue, Pepperfry’s revenue fell another 14% in FY25 to Rs 163 crore from Rs 189 crore in FY24. However, the company managed to reduce its losses by 27% to Rs 85 crore during the period.

Pepperfry competes with other well-funded furniture brands, including Urban Ladder, acquired by Reliance and backed by over $100 million in funding, and Wooden Street, which raised $77 million.