Investments, News, Startups

Pepperfry raises $8million from Norwest Venture Partners in Series B

Online lifestyle marketplace has raised $8mn from Norwest Venture Partners in Series B as per Livemint. The company had also raised $5mn from NVP in Dec 2011.

Unlike the market shift towards apparels, pepperfry has removed the complete catalogue of apparels changing focus from fashion & lifestyle marketplace to only Home & Lifestyle category. In February this year it has also appointed Kashyap Vadapalli (ex-eBay) as its CMO.

Fresh funds infused in pepperfry are expected to be deployed for increasing fulfilment centres in Kolkata, Bangalore and Chennai. It has centres in Jodhpur, Mumbai and Delhi.

As per the company, its current user base is 7 lakhs and 3 million unique visitors on monthly basis. Leading categories contributing to the pepperfry revenues are Home & Furnishing (40-45%) and Jewellery (30%). It crossed INR 100 crore ($18.2 mn) GMV in January 2013. It went live in Jan 2012, and on 16th month of its ecommerce life.

Niren Shah, managing director, NVP India, speaking about the investment in Pepperfry, said the company was doing well and has a market leadership in the home space excited them. He also said that it is a big category and the opportunity is about $20 billion to $25 billion. Pepperfry may also add musical instruments or fitness products and premium packaged foods in the coming year to its categories.

There were also rumours of a possible merger of Pepperfry with Fashionandyou. As both of them has NVP as common investor, so it creates speculation of possible follow up merger, as FnY can complement Pepperfry in apparels.

Speaking about the funding scenario in the ecommerce companies, Niren Shah believes, “The market is just beginning to open up for follow-on funding. I would agree that many seed-funded companies could not graduate to series A or series B funding but that’s just not restricted to e-commerce or India. This happens across sectors and in mature markets like the US too”.

Pepperfry competes online with other marketplaces like Shopclues, Tradus, Ebay, Snapdeal and also competes with niche category startups such as UrbanLadder, Roomstory and more.

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