Team Startupcity

• Pepperfry raised Rs 43.3 crore ($5.1 million) from existing investors.
• FY24 operating revenue fell 30.6% to Rs 188.9 crore.
• Funds will support growth initiatives and geographic expansion.

Pepperfry, an omnichannel furniture online marketplace, has raised Rs 43.3 crore (or about $5.1 million)  in a fresh round of funding led by existing investors General Electric Pension Trust, Norwest Venture Partners, Goldman Sachs, Panthera Growth Partners, and the Growth Equity Opportunity Fund.

The round was led by General Electric Pension Trust, investing Rs 21.5 crore, followed by Rs 8.5 crore from Norwest and Rs 6.4 crore from Panthera, while the rest came from the existing other shareholders. The board of the company authorized the issue of approximately 5.6 lakh compulsorily convertible preference shares at an issue price of Rs 775 per share to raise the capital, as per Entrackr citing regulatory filings from the Registrar of Companies (RoC).

Headquartered in Mumbai, Pepperfry had previously raised $23 million in September 2023 from the same investors. In 2021, the firm raised $45 million in debt capital to build scale and get ready for a listing. Established in 2012, Pepperfry went public in 2022 during its IPO plans with the initial target of raising $250–300 million. But the listing was delayed last year following talks with investment bankers, with co-founder Ashish Shah highlighting the firm's emphasis on profitability and growth.

In financial filings for FY24, Pepperfry's operating revenue dropped 30.6% on a year-on-year basis to Rs 188.9 crore, and net losses dropped 37.4% to Rs 117.4 crore. The fresh funding is likely to be used for growth opportunities, expansion geographically, and general corporate purposes.

Pepperfry is a marketplace model that provides a range of more than 10,000 home décor and furniture products both online and through its experience studios that are spread over 200+ locations in 100 cities. It generates most of its revenues in the form of commissions on third-party sales of products and has recently diversified its portfolio by adding several direct-to-consumer home décor brands.