With $100M in latest funding, Pepperfry plans to quadruple its tech team to leverage augmented reality
The home furniture and home care category in India is treated as a huge opportunity in the e-commerce space. Though this is a niche segment, inclusion of home decor in online space has provided huge reach and options for buyers, who otherwise had to rely on local retailers. If we go by the numbers, the home and furniture market in India currently stands at $25 billion in size. Huge internet penetration, backing from international investors and shift in consumer behaviour led top players like Pepperfry, Urban Ladder and FabFurnish to enter into the online space.
Recently, Mumbai-based Pepperfry, India’s largest furniture and home products marketplace, has raised $100 million in a fresh round of funding from Goldman Sachs and Zodius Technology Fund. Other existing investors, who also participated in this round, include Bertelsmann India Investments (BII), Silicon Valley-based Norwest Venture Partners (NVP). Moreover, Infosys veteran and Co-founder of Aarin Capital T.V. Mohandas Pai along with Ranjan Pai, Co-Founder, Aarin Capital also participated in the round. This is the largest quantum of investment raised by a sector focused e-commerce player in India.
Pepperfry aims to utilize the raised capital to expand its logistics footprint in Tier III and Tier IV cities by adding to its growing fleet of delivery vehicles. “Our goal is to be the place, where modern Indian families shop for their homes. While we are on this mission, we will benefit tremendously from the global insight of Goldman Sachs and Zodius as they join Pepperfry’s board. Our existing investors, Norwest and Bertelsmann, have been great partners and I thank them for reiterating their faith in our team,” said Ambareesh Murty, Founder & CEO, Pepperfry.
With more than 2 million customers on-board and furniture supply chain reaching customers in more than 300 cities, Pepperfry has quickly evolved as the leading player in the online marketplace for furniture and home furnishings. The latest round of funding is further validation of Pepperfry’s value proposition and the team's exceptional execution in the furniture and home category.
Commenting on the investment, Ankur Sahu, Co-Head - Private Equity, Goldman Sachs, Asia, said, “We have a strong conviction for the theme of domestic consumption growth in India. Goldman Sachs continues to back high-quality local entrepreneurs to build significant businesses that create and deliver value to the everyday lives of the country's young population. Through this most recent partnership with Pepperfry, we intend to leverage our global expertise in the sector to help create a large, differentiated leader in India’s rapidly growing e-commerce industry.”
Pepperfry also plans to open new distribution centres and expand its carpenter and assembly service network. Over the next year, they will quadruple its technology and engineering team with a focus on leveraging augmented reality on mobile to further enrich the buying experience. Additionally, they will continue to partner and advise consumers as they look to design their home interiors through its team of interior design specialists at the Pepperfry Experience Centres.
Other InvestmentsGlobal multi-stage venture capitalists and growth equity investment firms find India as a strategic growth region apt for building a formidable business in home care and furniture space. Earlier in April this year, Bengaluru-based Urban Ladder raised $50 million in Series C round of funding led by Sequoia Capital.