Furniture e-tailer Pepperfry has raised an amount of $100 million (around Rs. 642 crore) led by Goldman Sachs, Zodius Technology Fund, and existing investors Bertelsmann India Investments and Norwest Venture Partners. Avendus Capital was the adviser to the deal.
Raised investment will be used to strengthen the company’s logistics, technology platform, experience centres and marketing efforts.
Pepperfry has two million customers. It is a furniture and home products marketplace reaching over 300 cities directly. Even though the company diversified to categories like pet supplies and appliances, its 75% of sales come from furniture, as reported by TOI.
Pepperfry founder and CEO Ambareesh Murty said, “We will utilise the fresh capital to expand our logistics footprint in tier III and Tier IV cities by taking our fleet of delivery vehicles from 350 to 1,000 in the next 12 months.” Further adding he said, “We are also looking at quadrupling our technology and engineering team with a focus on leveraging augmented reality on mobile to further enrich the buying experience. We should have about 500 people by then.”
The company has plans of setting up more experience centres, thereby growing its presence to 20 cities, including Pune, Gurgaon, Kochi, Kolkata, Lucknow and Chandigarh.
As per a report by Goldman Sachs it believes that India is poised to see more people join the internet over the next 15 years than any other country. The prospect of one billion people online by 2030 sets the stage for a potential growth in eCommerce predicting that it will likely become a $300-billion hyper local, on-demand market.