Pepperfry raises Rs 250cr
Mumbai: Pepperfry, the online furniture marketplace, has raised Rs 250 crore in a fresh round of funding from State Street Global Advisors, the asset management unit of the $10-billion financial services giant State Street Corporation.
The money will be deployed to strengthen the supply chain of the company and double the number of its experience centres.
Investments will be made in developing augmented reality technology. Pepperfry will also enhance its private brand franchise in preparation for its initial public offering (IPO).
The company is planning to increase the number of studios (a concept store that showcases curated range of furniture) to over 50 from 25 by the end of the year and sharpen its technological focus with a view to offering a virtual touch and feel experience to its customers.
Investment management firm State Street Global Advisors will join existing investors such as Norwest Venture Partners, Bertelsmann India Investments, Zodius Capital and Goldman Sachs.
With the current funding, Pepperfry has raised a total of over Rs 1,200 crore since its launch six years ago. The company's revenue has grown at a compounded annual rate of over 83 per cent in the last five years. According to Ambareesh Murthy, CEO & founder, Pepperfry, the company is looking to turn profitable over the next two years.
Pepperfry had received its Series A funding of $ 5 million from Norwest in 2011. This was followed by another $8 million by the same investor.
It subsequently received three more fundings in 2014, 2015 and September 2016. Pepperfry now has more than 38 lakh registered users. In September 2017, Pepperfry launched new offerings such as furniture rentals and exchange.
The fresh cash infusion in Pepperfry comes just days after Urban Ladder, the furniture and home décor retailer, had raised an internal round of $12 million from various investors. These investors include Kalaari Capital, Saif Partners and Sequoia Capital.