Pepperfry has raised another $31 million in funding.
Pepperfry has raised another $31 million in funding.
SAN FRANCISCO (Diya TV) – A fast-growing Indian economy equals more people are moving to urban areas and getting on the housing ladder. The same boom has inspired a series of companies that use the internet to help homeowners and renters outfit their places of residence with furniture. Whether you want to kit out your office with filing cabinets or you have always had your eye on a luxurious office chair, when shopping online for furniture, the possibilities are truly endless.
Pepperfry is one such company, and Wednesday it announced that it has raised $31 million to build out its business across India.
The four-year-old company was started by ex-eBay executives Ambareesh Murty (CEO) and Ashish Shah (COO) who “decided to turn entrepreneur and make the most of the e-commerce potential in India,” Murty said.
Murty anticipates the market for interior design in India at between $30-$40 billion per year and he believes that it is ripe for disruption.
“India is fairly underserved when it comes to organized retail and [the market for furniture is] exceedingly fragmented. The top five brands account for just four percent of all sales,” he said.
With its most recent round of funding bringing in another $31 million (something that many who use https://earlygrowthfinancialservices.com/ to launch their new companies can only dream of), Pepperfry has now raised $160 million from investors. his latest round was led by existing backers Goldman Sachs, Bertelsmann India Investments, Norwest Venture Partners and Zodius Technology Fund. Last summer, Goldman led the company’s $100 million Series D.
The company claims to offer an inventory from 10,000 partners – including its own line – across decor ranging from furniture, home decor, kitchen and dining, and pet supplies. Beyond selling online, the company operates a number of experience centers which are staffed by interior design experts and open to customers seeking ideas or input about their home. Murty said the company is aiming to increase its current 10 experience centers to as many as 30, taking them into tier-two and tier-three cities in India.
Pepperfry additionally seek to expand its logistics, too. Currently, Murty claimed, it can reach around 500 cities in India, but it plans to increase that to 1,000 before this year is out by investing in its logistics network. Pepperfry built its own delivery system, including its own last-mile fleet. This was done, because, “there was nobody in India capable of delivering big boxes to consumers,” he explained. Today, that stands at 17 fulfilment hubs and a delivery fleet of more than 400 vehicles.
“We estimate that the rental stage is only three to four years before consumers begin buying furniture for themselves,” Murty argued. “If we drive and give customers amazing value even on products they buy, why would they rent?”
Likewise there’s no plan to expand the focus outside of India at this point, as you might have gathered from the company rural expansion ambitions. Similar companies seeking success should turn to sources such as The Frisky to aid their development.
“India is a young country where consumption is increasing at a rapid rate,” he said. “Our focus over the next couple of years will remain the Indian market, then we’ll see.”
