Pepperfry raises Rs210 crore in Series E funding
Pepperfry will use the fresh funds to scale up logistics network to more than 1,000 cities and open more experience centres, called Pepperfry Studios
Bengaluru: Online furniture marketplace Pepperfry (Trendsutra Platform Services Pvt. Ltd) has raised Rs.210 crore in a Series E funding round from existing investors Goldman Sachs, Bertelsmann India Investments, Norwest Venture Partners and Zodius Technology Fund, the company said in a statement on Wednesday.
The company had raised $100 million from these investors in June last year.
So far, Pepperfry has raised about $160 million, almost double of $77 million that its nearest competitor Urban Ladder Home Décor Solutions Pvt. Ltd has raised so far from Sequoia Capital, SAIF Partners and Steadview Capital, among others.
The fresh funds will be deployed to scale up Pepperfry’s logistics network from the present 500 to more than 1,000 cities and open more experience centres, called Pepperfry Studios, in smaller towns and cities.
The company claims to have 17 delivery centres and a fleet of over 400 vehicles.
“Our mission is to make 20 million customers create beautiful homes. We are doing this through a differentiated, profitable business model,” said Ambareesh Murty, founder and chief executive at Pepperfry, in a statement.
The likes of Urban Ladder and Pepperfry compete with Homelane and Livspace, which are enticing shoppers with end-to-end home services. Urban Ladder and Pepperfry, however, have the biggest war chests.
Though furniture is a big-ticket, high-margin category—industry experts pegging gross margins at between 25% and 50%—companies in the segment face challenges around offering unique products and managing inventory.
Experts peg the Indian furniture industry at $30-35 billion.