Pepperfry raises $23M from existing investors; elevates Ashish Shah as CEO
The management rejig comes a month after Ambareesh Murty, the former CEO of Pepperfry, passed away in Leh due to a cardiac arrest.
Online furniture seller has raised $23 million in a fresh round, as well as elevated Co-founder Ashish Shah to the role of Chief Executive Officer (CEO). The company announced the appointment a month after former CEO Ambareesh Murty's untimely death.
Shah was previously Chief Operating Officer of the Mumbai-based company and was in charge of operations, category management, product, and the omnichannel business.
"Ashish has played a pivotal role in shaping Pepperfry's customer-centric strategy, supply side strengths, and operational excellence," Pepperfry said in a statement.
Murty passed away due to a cardiac arrest at the age of 51 in Leh last month. "Extremely devastated to inform that my friend, mentor, brother, soulmate @AmbareeshMurty is no more. Lost him yesterday night to a cardiac arrest at Leh. Please pray for him and for strength to his family and near ones," Pepperfry Co-founder Ashish Shah said in a tweet last month.
Murty's contribution is said to have helped the company become one of the country's largest ecommerce marketplaces for furniture, with a valuation upwards of $460 million, as per data from market intelligence firm Tracxn.
Pepperfry competes with omnichannel players, including Furlenco, Wooden Street and HomeLane, as well as online marketplaces like Amazon and Walmart-owned Flipkart.
Ashish Shah, Co-founder, Pepperfry
The furniture retailer raised $23 million from existing shareholders, including institutional investors and family offices. The funds will be used to strengthen the retailer's omnichannel presence, improve the supply chain, and drive technology innovation, the company said.
The capital infusion is also expected to help the Mumbai-based furniture company inch towards profitability, the company said, adding that "the milestone is now within close reach."
The company is reportedly looking to get listed in the public markets to raise $250-300 million this year after it postponed IPO plans citing tough macroeconomic conditions.
Pepperfry's revenue from operations for the year ended March 2022 stood at Rs 247 crore while losses widened 83% to Rs 194 crore in the same period.
Founded in 2012 by Ambareesh Murty and Ashish Shah, Pepperfry was started as a horizontal online marketplace focused on fashion and lifestyle. After undergoing a few iterations, it has now become one of the country's largest tech-driven furniture retail firms with 190 retail studios in over 100 cities. It claims to have a customer base of more than 10 million with retail connections in over 500 cities.
To date, the firm has raised upwards of $230 million in funding from Norwest Venture Partners, Bertelsmann India Investment, Goldman Sachs Investment Partners, and General Electric Pension Trust, as per data from Tracxn. It last raised $40 million in a Series F funding round in February 2020.
"Pepperfry has always been committed to enhancing the way people create homes, and I am honoured to lead this incredible team of dedicated individuals who share this passion," said Shah. "The best tribute to Ambareesh will be to build on the foundation laid by us and fortify Pepperfry's position as India's leading furniture and home products company."
Edited by Kanishk Singh
