Pepperfry raises $23 mn from existing investors; announces Ashish Shah as new CEO

Ashish Shah, Co-founder & CEO, Pepperfry

Pepperfry, the e-commerce furniture and home goods marketplace, said it has raised $23 million from existing backers, institutional investors, and family offices over the past three months, but did not specify names.

At the same time, Pepperfry said its co-founder Ashish Shah has been promoted and will be the new CEO of the Mumbai-based startup. Shah, who was earlier the chief operating officer, has been elevated just weeks after his co-founder and former CEO of Pepperfry, Ambareesh Murty, died of a cardiac arrest in Leh last month. 

"The latest round of capital infusion will strengthen Pepperfry’s ability to cater to the evolving needs of its 10 million+ and increasing customer base through a strong omnichannel presence, a robust supply-chain and tech driven innovation," the company said in a press release.

Pepperfry has so far raised over $230 million from Norwest Venture Partners, Goldman Sachs, Bertelsmann India Investments, General Electric Pension Trust and Pidilite Ventures, among others, as per Tracxn, a private markets data provider.

"The best tribute to Ambareesh (Murty) will be to build on the foundation laid by us and fortify Pepperfry's position as India’s leading furniture and home products company," the company added.

Pepperfry has raised $23 million at a time when it has pushed back its plans to go public. The company was expected to file its draft red herring prospectus (DRHP) in the October-December quarter last year and was eyeing a valuation of around $500 million, roughly similar to its valuation in the last round.

The financials

It had even appointed JP Morgan and ICICI Bank for the process but has shelved those plans after public markets turned unfavourable for loss-making startups.

The company had clocked revenues of Rs 264 crore in FY22 and incurred a loss of about Rs 194 crore in the same year. While the top-line increased 19 percent from Rs 221 crore, its losses widened 83 percent from Rs 106 crore in FY21.