Pepperfry, an online furniture retailer, has secured $23 million in a recent funding round and has promoted co-founder Ashish Shah to the position of Chief Executive Officer (CEO). The announcement of Shah’s appointment comes one month after the untimely death of former CEO Ambareesh Murty. Previously, Shah served as the company’s Chief Operating Officer, overseeing operations, category management, product, and the omnichannel business. Pepperfry expressed that Shah played a pivotal role in shaping the company’s customer-centric strategy, supply-side capabilities, and operational excellence.
Ambareesh Murty, who passed away at the age of 51 due to cardiac arrest last month in Leh, was known for his significant contributions to Pepperfry, helping the company become one of India’s largest e-commerce marketplaces for furniture, with a valuation exceeding $460 million, according to Tracxn, a market intelligence firm. Pepperfry competes with omnichannel players like Furlenco, Wooden Street, and HomeLane, as well as online marketplaces such as Amazon and Flipkart, which is owned by Walmart.
Pepperfry raised $23 million in this funding round from existing shareholders, including institutional investors and family offices. The funds will be utilized to strengthen the retailer’s omnichannel presence, enhance the supply chain, and drive technological innovation. The capital injection is also expected to bring the Mumbai-based furniture company closer to profitability, with that milestone now within reach, according to the company.
Reports suggest that Pepperfry is planning to go public and raise $250-300 million in public markets later this year, after previously postponing its IPO plans due to challenging macroeconomic conditions. For the fiscal year ending March 2022, Pepperfry reported revenue from operations of INR 247 crore, with losses widening by 83% to INR 194 crore in the same period.
Founded in 2012 by Ambareesh Murty and Ashish Shah, Pepperfry began as a horizontal online marketplace focusing on fashion and lifestyle. After several iterations, it has evolved into one of India’s largest tech-driven furniture retail companies, with 190 retail studios in over 100 cities. The company claims to have a customer base of more than 10 million, with retail connections in over 500 cities. Pepperfry has raised over $230 million in funding to date from investors like Norwest Venture Partners, Bertelsmann India Investment, Goldman Sachs Investment Partners, and General Electric Pension Trust.
Ashish Shah, the newly appointed CEO, stated, “Pepperfry has always been committed to enhancing the way people create homes, and I am honored to lead this incredible team of dedicated individuals who share this passion. The best tribute to Ambareesh will be to build on the foundation laid by us and fortify Pepperfry’s position as India’s leading furniture and home products company.”
