Online furniture retailer Pepperfry has raised $40 million in a Series F round led by Pidilite Industries, the maker of popular homegrown adhesive brand Fevicol. The round has also seen participation from existing investors Goldman Sachs, Norwest Venture Partners, Bertelsmann India, and State Street Advisors.
This investment comes a month after Pidilite co-invested $30 million in online interior design company Home Lane.
In India and globally, companies like Pidilite are betting on startups in order to access newer customers, products, markets, technologies, and trends.
Utkarsh Sinha, MD, Bexley Advisors, said, “With the pace of transformation currently underway, investing in disruptors gives established players a shorter route to market. Despite abundant dry powder for late-stage deals, the transaction execution has tempered post-Soft Bank/We-Work.”
“These deals are more common in earlier rounds, and therefore, such a late stage bet is a vote of confidence on Pepperfry’s traction and probably its unit economics. There could be more such deals this year,” he added.
Business of Pepperfry
Pepperfry was started by Ambareesh Murty and Ashish Shah in 2011. It is one of the leading online home and lifestyle stores offering a wide range of furniture and home decor products.
Beginning with categories like home, lifestyle, and fashion, Pepperfry now specializes in furniture and home products on its managed marketplace platform. The company’s wide range of products includes furnishings, wall accents, mattresses, bedding, dining sets, kid’s room decor, among others.
The website of Pepperfry claims that it has 1 lakh products to choose from and more than 120 lakh monthly visits on its platform. It has 60 lakh registered users.
Pepperfry has 40 plus experience centres and 21 fulfillment hubs across India. Currently, the firm has 67 studios operational in more than 25 Indian cities including Bengaluru, Pune, Noida, Gurugram, Mysore, New Delhi, Chandigarh, and others.
The company directly competes with Sequoia Capital-backed Urban Ladder and Walmart-owned Flipkart.