Venture debt and speciality lending firm InnoVen Capital on Friday said that it has invested Rs 35 crore (about $4.8 million) in a debt funding round in Pepperfry. This will be the firm's third investment in the omnichannel furniture retailer since 2017.
“These funds will be used to increase our footprint across the country and capitalize us even beyond achieving profitability,” Neelesh Talathi, CFO, Pepperfry said in a statement.
“We are pleased to deepen our partnership with InnoVen Capital. We remain focused on expanding Pepperfry’s leadership position in the Indian furniture and home eCommerce. Our business has seen strong momentum through Covid and we continue to make good progress towards achieving profitability and managing cash flows,” he added.
Pepperfry claims to be India’s largest furniture and home products focused marketplace. It has seen significant growth in the past months with improved economics for the business.
As of FY20, the company’s revenue grew 27.31% on YoY basis at Rs 246.03 crore. In the same period, it managed to cut losses by 33.34% to Rs 122.31 crores from Rs 183.48 crore in FY19.
The company is now focussing on turning profitable and investing in building its private labels which include nine brands.
“We have seen Pepperfry grow and emerge as a category leader, while adding new capabilities and product offerings on its platform. They have built a strong brand and this investment reaffirms our commitment to back high performing portfolio companies across their life cycle,” Sameer Mansukhani, senior director, InnoVen Capital India said.
In February 2020, Pepperfry had raised $40 million in a growth round led by Pidilite Industries, the maker of adhesive brands Fevicol, Dr Fixit and FeviKwik. Existing investors Goldman Sachs, Norwest Venture Partners, Bertelsmann India and State Street Advisors also participated in the round.