Pepperfry Secures ₹43.3 Crore from Existing Investors to Fuel Growth and Expansion

Pepperfry, an omnichannel furniture and home goods company, has raised ₹43.3 crore from existing investors, including Norwest Venture Partners, Goldman Sachs, General Electric Pension Trust, Growth Equity Opportunity Fund and Panthera Growth Partners, as reported by Entrackr.

According to regulatory filings with the Registrar of Companies (RoC), Pepperfry’s board approved the issuance of 559,463 compulsory convertible preference shares at ₹775 each to secure this amount. This funding round follows a $23 million raise from the same investors in September 2023.

General Electric will lead Pepperfry’s fundraising with an investment of Rs 21.5 crore ($2.5 million), followed by Norwest Venture Partners and Panthera Growth Partners, contributing ₹8.52 crore and ₹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 remaining funding.

According to the regulatory filing, Pepperfry plans to utilise the proceeds for growth, expansion and general corporate purposes.

Entrackr estimates Pepperfry’s valuation at ₹3,120 crore, or $367 million, post-allotment.

Postponed IPO

Pepperfry postponed its planned initial public offering (IPO) last year after discussions with bankers regarding entry into the public market, according to founder and CEO Ashish Shah.

Founded in 2012, the startup initially aimed to go public in 2022. In 2022, Pepperfry’s late founder and then-CEO Ambareesh Murty told ET that the company intended to raise $250 – 300 million through an IPO.

“We have postponed our IPO plans for the time being. There are other important areas to focus on in the business. From a cost standpoint, we are strong. Therefore, we are focusing on growth now. We aim to go slow but get solid growth, which is also profitable. If we can continue this growth for 8 – 10 months, we will be IPO-ready,” Shah stated.

According to Ashish Shah, Pepperfry is now heavily focused on the home decor market. To diversify its portfolio, the company has incorporated several direct-to-consumer (D2C) brands.