Online Furniture Retailer Pepperfry Raised $38.5Mn From State Street Global Advisors
Online furniture retailer, Pepperfry, has raised $38.5 million (approx INR 250 crore) in a fresh funding round from US-based investor State Street Global Advisors (SSGA).
The raised capital will be used by the company in expanding its offline presence as new stores, logistics & supply network, enhancing technology etc.
The entry of a new investor into Pepperfry comes as a validation for the retailer, especially in a market where few e-commerce companies have been able to attract new investors.
Online furniture retailer Pepperfry was founded in 2011 by ex-eBay executives Ambareesh Murty and Ashish Shah as a marketplace and lately added private label brands in various categories which now contribute 50% of total revenues. It has its own fleet of 400 trucks and operates 18 warehouses, enabling the company to deliver furniture to over 500 cities.
Peppery raised its previous round from existing investors in 2016. Its nearest rival, Urban Ladder, announced a $12-million (INR 77 crore) round last week from Kalaari Capital, SAIF Partners and other existing investors.
State Street Global Advisors (SSGA) is the asset management arm of State Street Corporation, a New York Stock Exchange-listed investment management firm with $2.8 trillion in assets under management.
“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,” said Anandh Hari, managing director for private equity at SSGA.
As part of the deal, Hari will join the company’s board of directors.
With INR 1,200 crore raised to date from the likes of Norwest Venture Partners, Bertelsmann India Investments, Zodius Capital and Goldman Sachs, Pepperfry is the best funded player in the online furniture and home furnishings category.
The company also launched a furniture rental service last year.