Furniture company Pepperfry, which sells both online and in stores, has raised INR 43.3 crore in funding. The round was led by General Electric Pension Trust and included some of its current investors.
According to documents from the Registrar of Companies (RoC), General Electric Pension Trust invested the most, putting in INR 21.5 crore. Norwest Venture Partners added INR 8.52 crore, and Panthera Growth Partners invested INR 6.45 crore.
Pepperfry’s board has approved a plan to issue 5,59,463 special shares, called compulsory convertible preference shares, at a price of Rs 775 each. These shares will be sold privately to selected investors.
“The purpose of issuance is to raise funds for the growth, expansion and general corporate activities of the Company,” stated the regulatory filing.
The news was first shared by media, which estimates that after this funding round, Pepperfry is now valued at around INR 3,120 crore.
Pepperfry, which competes with companies like Urban Ladder (backed by Reliance), Wakefit.co, and WoodenStreet, sells furniture and home decor through its physical stores and its online platform. Most of its income comes from commissions on the products it sells.
Pepperfry mainly makes money by taking a commission on the products it sells. The new funding comes at a time when the company is working to reduce its losses while dealing with slow business growth.
In the financial year 2024 (FY24), Pepperfry’s revenue dropped by 30.6% to INR 188.98 crore. However, it was able to lower its losses to INR 117.4 crore, which is about 37% less than the INR 187.6 crore loss it had the year before.
In September 2023, the Mumbai-based company raised $23 million from its existing investors.
At the same time, Pepperfry made co-founder Ashish Shah the new CEO. A year later, it promoted Madhusudan Bihani to the position of CFO (Chief Financial Officer).
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