And India’s expected-to-be-$20 Billion e-commerce market continues to attract global players. Following those heavy funding rounds of Flipkart, Snapdeal and PayTM is Pepperfry, an online marketplace for furniture and home decor products.
Pepperfry has raised a staggering $100 million from Goldman Sachs Group and Zodius Technology Fund, along with the participation of existing investors Norwest Venture Partners and Bertelsmann India Investments.
This is the fourth round of funding for the company. The raised capital will primarily be used to strengthen company’s logistics, technology platform, experience centers and increase marketing efforts.
Founded in 2012 by Ambareesh Murty and Ashish Shah as an eCommerce store for categories like home, lifestyle, fashion, etc., Pepperfry later changed its business model to managed marketplace. Previously, the company had raised $28 million in three funding rounds from Norwest Venture Partners and Bertelsmann India Investments.
Not only it sells products through its website, it also manufactures products. The company has also employed carpenters and operates a fleet of over 350 delivery vehicles.
Commenting on this new investment, Ambareesh Murty, Founder and CEO of Pepperfry told PTI:
We will benefit tremendously from the global insight of Goldman Sachs and the business savvy of Zodius as they join the Pepperfry board. The investment will help us expand our presence and invest in strengthening our operations.
Ankur Sahu, Goldman Sachs Asia Co-Head Private Equity, said,
Goldman Sachs continues to back high-quality local entrepreneurs to build significant businesses that create and deliver value to the everyday lives of the country’s young, billion plus population.
Pepperfry is now looking to expand its footprints to tier III and tier IV cities in India. To make this happen, it plans to increase its fleet of delivery vehicles from 350 to over 1,000 in the coming 12 months. It is also planning to set up more experience centres in over new 20 cities, including Pune, Gurgaon, Kochi, Kolkata, Lucknow and Chandigarh.
The furniture market in India is estimated to reach $70 billion by 2020. Major players in this market includes Urban Ladder, which raised $50 million, and FabFurnish which is backed by Swedish investment giant AB Kinnevik and and Berlin-based Rocket Internet AG. Both operate online platforms for selling top notch furniture for your home furnishing needs.