Pepperfry raises INR 250 crore in a new round of funding
By Satarupa Chakraborty | March 08, 2018
Marking highest amount (amounting to be INR 1200 crores in total) of capital raised by an e-commerce furniture and home products company, Pepperfry raises a fresh funding of INR 250 crore from State Street Global Advisors. The brand has revealed its plan to invest in experience centers in smaller towns and developing AR/VR technologies for its virtual entity and enhance the Private Brand franchise in its run towards IPO.
Omni-channel furniture retailers Pepperfry has raised INR 250 crore in a fresh round of funding from State Street Global Advisors, the asset management business of State Street Corporation (NYSE:STT), which is one of the world’s largest investment management companies with $2.78 trillion in Assets Under Management,. Pepperfry has raised over INR 1200 crore of capital since it began operations 6 years ago. This is the highest amount of capital raised by an e-commerce furniture and home products company in India.
Home Furniture and Décor is amongst the largest consumption categories in India, expected to reach INR 350,000 crore in market size by 2020. Pepperfry identified and leveraged the opportunity presented by the highly fragmented nature of this category to differentiate across the value chain, building supply and demand side differentiation by working with thousands of Small Manufacturers, developing an extensive portfolio of Private Brands, establishing an omni channel footprint of over 25 Pepperfry Experience Centers and building India’s largest consumer-facing Big-Box supply chain serving customers in 500+ Indian cities.
The fresh funds will be deployed to expand Pepperfry’s Experience Centers in Tier II Towns, invest behind developing AR/VR technology for virtual touch and feel, and enhance the Private Brand franchise in preparation for its next financial milestone of an IPO.
Ambareesh Murty, Founder & CEO of Pepperfry said, “We have been fortunate to have partners who believe in our business, are aligned with our strategy and value our execution capabilities. I welcome a marquee investor like State Street Global Advisors to Pepperfry and look forward to their partnership in this new phase of our journey.”
Anandh Hari, Managing Director Private Equity, State Street Global Advisors said, “We are excited to enter the Indian e-Commerce market through our investment in Pepperfry. India’s large Furniture and Décor market is ripe for disruption and we believe that Pepperfry’s unique strategy, proven execution capabilities and passionate team are the perfect ingredients for success.”