Private Equity fund of American investment bank, Goldman Sachs, along with Norwest Venture Partners and Bertelsmann India Investments (BII) may invest $100 million in furniture e-tailer Pepperfry, reported ET Tech, citing sources privy to the development. All three investors are already investors in Pepperfry.
The funds raised will help Pepperfry expand its offline presence and diversify to strengthen its position in furniture market which is riding on a wave set off by Global giant like Ikea, a Siss company entered India last year.
Ikea, along with search giant Google, are contemplating to enter Indian e-commerce market as they both are coming up with their own e-commerce stores under their own brand names respectively, to sell their branded products under one roof.
Existing investors of Pepperfry are looking at investing $100 million into the company and according to the report, fresh equity will be issued in the proposed round in which the investors will seek to maintain their level of holdings in the company.
In July 2015, Goldman Sachs, Bertelsmann India Investments and Norwest Venture Partners, have contributed in $100 million Series-D rounding of funding of Pepperfry. This was followed by an additional 210 crore investment in September 2016.
Founded in 2012, by Ambareesh Murty and Ashish Shah, Pepperfry.com has raised a total of about $198 million in funding over 6 rounds. Their latest funding was raised about $34 million in March last year, according to data by Crunchbase. NOtably, in the same month of same year, Pepperfry’s rival, Urban Ladder, too had raised $12 million from Kalaari Capital, SAIF Partners, Sequoia Capital and Steadview Capital, in its second internal round of funding.
According to industry estimates, India’s online home-furnishing and furniture retail market is expected to cross $1.1 billion in revenue this year, up from about $900 million in 2016.