Mumbai-based omnichannel furniture retailer Pepperfry has successfully raised ₹43.3 crore (approximately $5.1 million) in a fresh funding round from its existing investors. This capital infusion comes as the company navigates a competitive market landscape and aims to strengthen its growth trajectory.
The recent funding round saw participation from prominent investment firms, including General Electric Pension Trust, Norwest Venture Partners, Goldman Sachs, Panthera Growth Partners, and Growth Equity Opportunity Fund. General Electric Pension Trust led the round with an investment of ₹21.5 crore, followed by Norwest Venture Partners with ₹8.5 crore and Panthera with ₹6.4 crore. The remaining amount was contributed by other investors. Pepperfry issued approximately 5.6 lakh compulsorily convertible preference shares at a face value of ₹775 each on a private placement basis. This funding follows a previous $23 million round in 2022 and a $45 million debt funding in 2021.
In FY24, Pepperfry reported a 30.6% year-on-year decline in operating revenue to ₹188.9 crore. However, the company managed to narrow its losses by 37.4% to ₹117.4 crore, down from ₹187.6 crore in the previous year. Amidst these financial adjustments, Pepperfry postponed its planned initial public offering (IPO) last year to focus on enhancing growth and profitability. The company continues to compete with major e-commerce platforms like Amazon India, Flipkart, and Reliance-owned Urban Ladder, primarily generating revenue through commissions on product sales.
Pepperfry’s latest funding round underscores the continued confidence of its existing investors in the company’s business model and growth potential. As the company navigates a challenging market environment, this capital infusion is expected to support its strategic initiatives aimed at achieving profitability and expanding its market presence.