Exclusive: Pepperfry to secure fresh funds from existing investors

Omnichannel furniture brand Pepperfry is raising Rs 43.3 crore (approximately $5.1 million) from existing investors including General Electric Pension Fund, Norwest Venture Partners, Goldman Sachs, Panthera Growth Partners and others.

This funding follows its $23 million round raised in September 2023 from the same investors.

The Pepperfry’s board passed a resolution to approve the issue of 5,59, 463 compulsory convertible preference shares at an issue price of Rs 775 each to raise the aforementioned sum, its regulatory filings accessed from the Registrar of Companies (RoC) show.

General Electric will lead the funding with Rs 21.5 crore ($2.5 million) followed by Norwest Venture Partners and Panthera Growth Partners who will infuse Rs 8.52 crore and Rs 6.45 crore, respectively to increase their stakes in the company. Goldman Sachs, Erste WV Gutersloh GmbH and Growth Equity Opportunity Fund Cayman Holdings Ltd will cover the rest of the funding amount.

According to the filing, the company will utilize the proceeds from this funding for growth, expansion, and general corporate purposes.

As per Entrackr estimates, Pepperfry will be valued at Rs 3,120 crore or $367 million (post-allotment).

Pepperfry operates on a marketplace model across both online and offline channels. Offering a catalog of over 10,000 products, it connects customers with leading brands like Godrej, Springfit, and Spacewood. The company claims to have a retail presence of more than 200 studios spread across 100+ cities.

According to startup data intelligence platform TheKredible, the Mumbai-based company has raised over $270 million to date from investors including Norwest Venture Partners, General Electric, Broad Street Investment, Pidilite and others.

For the fiscal year ending March 2024, Pepperfry’s operating revenue declined 30% to Rs 189 crore while narrowing its losses by over 37% to Rs 117.5 crore during the same period.

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