Online furniture retailer is hopeful to get ready investors as the margins here are 20-30 per cent higher than other products.
New Delhi: The online furniture retailer, Pepperfry, is looking to raise a fresh round of funding to increase its product portfolio, offline and online campaigns as well as upgrading its logistics facilities.
"We are looking to raise funds of something between $ 60 million and $ 80 million. The talks are at the final stage and we expect to close the deal by May," Pepperfry COO Ashish Shah told PTI.
"We are currently on an expansion mode and we need to invest a lot of money in reaching people. At present, we reach 150 cities and we want to take that number up. We also want to increase the variety of items and we will invest the funds mainly for these purposes," he said.
Talks are therefore on with investors, including existing ones like Norwest Venture Partners (NVP) and Bertelsmann. The company has managed to raise $ 28 million (about Rs 175 crore) from NVP and Bertelsmann in three rounds of investment so far.
"Our investors are very happy with us as we are doing well. They are ready to participate in this round too. We are also talking to a few other investors as well," Shah said.
Investors are keen to spend in this sector believes Shah. The competition is on the rise due to the margins, which in the online furniture market is much higher than other products as retailers get between 20-30 per cent.
At the same time, Pepperfry is aiming at increasing its count of brick-and-mortar stores. Currently, it has one flagship store in Mumbai and three smaller outlets in Mumbai, Bengaluru and Delhi airports.
By the end of 2015, the company is set to add 19 stores at different locations across the country.
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