Pepperfry raises Rs 250 Cr from State Street Global Advisors
The fresh funds will be deployed to expand Pepperfry’s Experience Centres in Tier II towns, invest in 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.
Furniture and home products marketplace, pepperfry.com on Wednesday announced that it has raised Rs 250 Crore in a fresh round of funding from State Street Global Advisors, the asset management business of State Street Corporation.
In its capacity as an advisor and manager of private equity, State Street Global Advisors joins names such as Norwest Venture Partners, Bertelsmann India Investments, Zodius Capital and Goldman Sachs who have previously invested in Pepperfry.
Including this current round, Pepperfry has raised over Rs 1,200 crore of capital since it began operations six years ago. The company claims this to be the highest amount of capital raised by an e-commerce furniture and home products company in India.
“The fresh funds will be deployed to expand Pepperfry’s Experience Centres 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,” the company said in a press statement.
Ambareesh Murty, Founder and 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 ecommerce 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.”
Home furniture and décor is amongst the largest consumption categories in India; it is expected to reach Rs 350,000 crore in market size by 2020.
Pepperfry claims that its revenues have grown at a CAGR of over 83 percent in the last five years.
Niren Shah, Managing Director, Norwest Venture Partners and Pepperfry’s earliest investor, said, “We believed in Ambareesh and Ashish’s vision for Pepperfry six years ago and it has been great to see that vision crystallise and grow through the years. It has been a fantastic journey.”