Bengaluru: Pepperfry has received Rs 35 crore from InnoVen Capital, the third investment by the venture debt and specialty firm in the online furniture marketplace.

Pepperfry’s business witnessed strong growth momentum through the Covid-19 pandemic and the company is on track to achieve profitability, Chief Financial Officer Neelesh Talathi said. “The funds will be used to increase our footprint across the country and capitalise us even beyond achieving profitability.”

Pepperfry posted a 26% increase in revenue and cut losses by 33% in financial year 2019-20, regulatory filings sourced by business intelligence platform Tofler showed.

According to a report by RedSeer Consulting, the online furniture market has been growing at a compounded annual growth rate of 80-85%, chiefly on demand from Tier-I cities.

“The online furniture segment is still young and received its boost only recently as shoppers looked online to meet their home-office, hobby and gardening needs,” said Ankur Pahwa, leader e-commerce and consumer internet at EY. “For the near future, the mostly likely scenario is one to increase the pie as both startups and traditional retailers look to capitalise on the online shopping trend.”

In December last year, Pepperfry’s rival Urban Ladder
sold 94% stake to Reliance Retail for Rs 182 crore.





News Of India

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