[Funding alert] Pepperfry raises Rs 35 Cr debt capital led by InnoVen
The online furniture startup Pepperfry has raised Rs 35 crore in debt capital raised by the venture debt firm InnoVen Capital. The startup has seen significant growth in the past months, with improved economics for the business. The startup had raised funding last February.
Neelesh Talathi, CFO, Pepperfry said in the press statement, “We are pleased to deepen our partnership with InnoVen Capital. We remain focused on expanding Pepperfry’s leadership position in the Indian furniture and home ecommerce. Our business has seen strong momentum through Covid and we continue to make good progress towards achieving profitability and managing cash flows. These funds will be used to increase our footprint across the country and capitalise us even beyond achieving profitability.”
This is the third investment by InnoVen Capital in Pepperfry, which it had first funded in 2017. The startup claims to have a managed marketplace model, where it helps thousands of entrepreneurs and merchants sell to millions of discerning customers across India and the world.
Sameer Mansukhani, Senior Director, InnoVen Capital India, said, “We have seen Pepperfry grow and emerge as a category leader, while adding new capabilities and product offerings on its platform. They have built a strong brand and this investment reaffirms our commitment to back high performing portfolio companies across their life cycle."
As of October 2019, the team worked 10,000 sellers, out of which 3,500 sellers get orders every month. Pepperfry had over 22 distribution centres present in most capital cities, and it also works across 500 cities. In 2019 itself, Pepperfry recorded a 47 percent rise in revenue. The startup also increased its ad spend by over 88 percent to Rs 4.12 crore from Rs 1.49 crore in the year-ago period. Similarly, its data hosting and technology expenses increased from Rs 6.22 lakh to Rs 25.10 lakh in FY19.