Pepperfry Bags $23 Mn Funding, Appoints Cofounder Ashish Shah As CEO

IPO-bound D2C furniture brand Pepperfry has raised $23 Mn from its existing investors, including institutional investors and family offices. 

The fresh capital infusion will help the startup cater to its over 10 Mn customer base while strengthening its omnichannel presence, Pepperfry said in a statement.

The funding comes almost two years after the startup bagged around $45 Mn in a debt funding round from Norwest Venture and General Electric Pension Trust.  

Besides the fundraise, the startup also announced elevation of its cofounder Ashish Shah as the new CEO, after the unfortunate demise of Ambareesh Murty last month. 

The startup, which competes against the likes of Urbanladder, has been preparing for its initial public offering (IPO) since early 2022. It even converted itself into a public entity in May last year, a mandatory step before filing draft red herring prospectus (DRHP) with market regulator Securities and Exchange Board of India (SEBI). 

The startup is backed by the likes of Goldman Sachs, Norwest Venture Partners, Bertelsmann India Investments and State Street Global Advisors. It reported a net loss of INR 183 Cr in FY22, while total revenue stood at INR 264.1 Cr during the year. The startup’s expenses jumped 40% to INR 458.1 Cr in FY22 from INR 327.5 Cr in FY21 on the back of growing marketing expenses.

Founded in January 2012 by Murty and Shah, Pepperfry sells a wide range of furniture and other home products, including mattresses, dining and bar furniture, carpets, appliances, garden and outdoor, on its website. It also has an offline presence through its franchise model. 

Pepperfry competes against the likes of Jaipur-based Woodenstreet, which last raised $30 Mn last year, Reliance-owned Urban Ladder, Think Investments-backed Arrivae, and Upscalio-backed Green Soul.